IITian, Princeton Graduate…: Who Is Sanjay Malhotra, New RBI Governor Replacing Shaktikanta Das?

After months of speculation surrounding the future of Shaktikanta Das as RBI Governor, the government has officially announced Sanjay Malhotra, the current Revenue Secretary, as the 26th Governor of the Reserve Bank of India (RBI). Malhotra will succeed Das, whose tenure is set to end on December 10, 2024, after leading the central bank for six transformative years.

A Seasoned Bureaucrat with Vast Experience
Sanjay Malhotra, a 1990-batch IAS officer from the Rajasthan cadre, brings with him over three decades of distinguished bureaucratic experience across key sectors, including finance, taxation, and mining. Before he was appointed Revenue Secretary, he held several senior roles, notably as Secretary to the Department of Financial Services. His leadership in the Department of Revenue has been marked by significant strides in tax collection reforms, including the simplification of tax procedures. Malhotra also serves as the ex-officio Secretary to the GST Council, playing a pivotal role in shaping India’s tax landscape.

A Strong Academic Foundation
An alumnus of IIT Kanpur, Malhotra's academic credentials are equally impressive. He holds a Master's degree in Public Policy from Princeton University, one of the most prestigious institutions in the world. His robust understanding of both economic policy and public governance makes him well-equipped for the challenges of steering the RBI.
Before taking on his current role, Malhotra served as the Chairman and Managing Director of REC Limited, where his leadership was credited with driving the company’s growth and efficiency. 

Facing the Challenges Ahead
As the 26th Governor of the RBI, Malhotra steps into a challenging economic environment. Growth has slowed significantly, with Q2 growth dipping below expectations, and inflation remains stubbornly above the RBI’s tolerance band. While the clamour for a rate cut grows louder, particularly with slowing economic activity, the RBI's Monetary Policy Committee (MPC) has maintained a cautious stance, keeping rates unchanged in the last 11 meetings. Malhotra now faces the delicate task of balancing India’s growth and inflation dynamics, a tightrope walk that will define his tenure as RBI Governor.

Shaktikanta Das’s Legacy
Malhotra takes over from Shaktikanta Das, who led the RBI through some of the most turbulent times in recent history, including the COVID-19 pandemic. Das, appointed after the sudden exit of Urjit Patel, not only steered the central bank through the crisis but also successfully stabilized India’s growth-inflation dynamics during one of the most challenging periods in the country’s economic history. His leadership has left a strong legacy, and Malhotra’s appointment signals the beginning of a new phase for the institution.