Sanjay Malhotra, currently Revenue Secretary in the Ministry of Finance, is set to take over as the 26th Governor of the Reserve Bank of India (RBI) on December 11. Speaking to reporters outside the finance ministry, Malhotra emphasized his commitment to balancing diverse perspectives and prioritizing the economy’s best interests. “One has to understand the turf, all perspectives, and do what’s best for the economy,” he said.

A 1990-batch IAS officer from the Rajasthan cadre, Malhotra brings over 30 years of experience in public policy, with expertise spanning power, finance, and taxation. He will succeed Shaktikanta Das, who held the position since December 2018.

Malhotra assumes the role at a critical juncture for the Indian economy, which faces slowing growth and persistently high inflation. GDP growth slowed to 5.4% in the July-September quarter, marking a seven-quarter low, while inflation surged to a 14-month high of 6.21% in October, breaching the upper limit of the RBI’s mandated inflation target of 4%, with a permissible deviation of ±2%.

Under Das’s leadership, the RBI maintained steady benchmark interest rates for nearly two years, focusing on inflation control. Malhotra, regarded as a team player, is expected to adopt a collaborative approach, emphasizing that price stability requires coordinated efforts between the central bank and the government.

With rising pressure to cut interest rates to stimulate growth, Malhotra faces the challenge of balancing monetary policy to support economic recovery while managing inflationary risks. As India navigates these economic headwinds, the new RBI governor’s decisions will be pivotal in shaping the country’s monetary strategy and sustaining its long-term economic stability.

Sanjay Malhotra, currently Revenue Secretary in the Ministry of Finance, is set to take over as the 26th Governor of the Reserve Bank of India (RBI) on December 11. Speaking to reporters outside the finance ministry, Malhotra emphasized his commitment to balancing diverse perspectives and prioritizing the economy’s best interests. “One has to understand the turf, all perspectives, and do what’s best for the economy,” he said.

A 1990-batch IAS officer from the Rajasthan cadre, Malhotra brings over 30 years of experience in public policy, with expertise spanning power, finance, and taxation. He will succeed Shaktikanta Das, who held the position since December 2018.

Malhotra assumes the role at a critical juncture for the Indian economy, which faces slowing growth and persistently high inflation. GDP growth slowed to 5.4% in the July-September quarter, marking a seven-quarter low, while inflation surged to a 14-month high of 6.21% in October, breaching the upper limit of the RBI’s mandated inflation target of 4%, with a permissible deviation of ±2%.

Under Das’s leadership, the RBI maintained steady benchmark interest rates for nearly two years, focusing on inflation control. Malhotra, regarded as a team player, is expected to adopt a collaborative approach, emphasizing that price stability requires coordinated efforts between the central bank and the government.

With rising pressure to cut interest rates to stimulate growth, Malhotra faces the challenge of balancing monetary policy to support economic recovery while managing inflationary risks. As India navigates these economic headwinds, the new RBI governor’s decisions will be pivotal in shaping the country’s monetary strategy and sustaining its long-term economic stability.