RBI Governor Shaktikanta Das gets 3-year extension

New Delhi, October 29

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The government has extended the term of Reserve Bank of India (RBI) Governor Shaktikanta Das by three years—a tenure that will make him the second longest serving head of the central bank.

Das was appointed as RBI’s 25th governor on December 11, 2018, for a period of three years after the surprise resignation of his predecessor Urjit Patel.

An official order dated October 28 said the government has reappointed Das as the governor of the central bank for a period of three years beyond December 10, 2021, that is till December 2024.

The extension is longer than the norm of a two-year term in the last two decades.

Das’ re-appointment will ensure continuity at a critical juncture for the economy that is emerging out of the devastation caused by the COVID-19 pandemic.

He will be the fifth governor to get a tenure this long. Usually, RBI governors are given a five-year term.

If completed, he will be the longest-serving governor after Sir Benegal Rama Rau, who was in office for 7 years and 197 days between July 1, 1949, and January 14, 1957.

The other four governors who had a tenure of more than 5 years were Bimal Jalan (November 1997 to September 2003), James Taylor (July 1937 to February 1943), B P Bhattacharya (March 1962 to June 1967), and C D Deshmukh (August 1943-June 1949).

Raghuram Rajan—the first governor under the Modi government—demitted office after completing his first three-year tenure. His successor and Das’ predecessor Urjit Patel was in office for 2 years and 98 days.

Under Das, the central bank cut key interest rates to record lows, infused massive liquidity into the banking system to shore up the pandemic-hit economy, and oversaw the quick rescue of troubled lenders.

The decision to give him an extension was taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi.

“The Appointments Committee of the Cabinet has approved the reappointment of Shri Shaktikanta Das, IAS Retd (TN:80), as Governor, Reserve Bank of India for a period of three years beyond 10.12.2021 or until further orders, whichever is earlier,” the order said.

Das, a 1980-batch IAS officer, played an important role in steering the economy during the COVID-19 period. Under his leadership, RBI announced more than 100 measures to maintain financial stability and push growth during the unprecedented crisis.

To steer the economy out of the woods, triggered by a once-in-a-century pandemic, he took both conventional and unconventional measures.

The Monetary Policy Committee (MPC) headed by him brought down the benchmark interest rate to a record low of 4 per cent last year in May, and since then has maintained an accommodative stance to support growth. The government’s largest-ever borrowing of Rs 12.60 lakh crore was also conducted smoothly.

In his earlier stint as the Economic Affairs Secretary from 2015 to 2017, Das worked closely with the central bank and oversaw the demonetisation of high-value notes in late 2016.

After his retirement, he was named India’s G-20 sherpa and was also appointed as a member of the 15th Finance Commission. PTI