RBI governor gets three-year extension

Wednesday 03rd November 2021 06:22 EDT

The government reappointed Shaktikanta Das as the governor of the Reserve Bank of India (RBI) for a period of three years from December 20, 2021, or until further orders. Completion of the term would make Das the longest serving governor in over seven decades and second longest in RBI’s history.

The longer-than-expected tenure is seen by the markets as a message that the government wants to ensure continuity. The Appointments Committee of the Cabinet issued its order on reappointment last week. The longest-serving RBI governor to date was Benegal Rama Rau, who was in office for seven years and 197 days between July 1, 1949, and January 14, 1957.

“The reappointment of governor Das for a three-year term signals continuity of monetary policy and gives greater stability to government-RBI relations,” said Rahul Bajoria, India economist at Barclays in a note.

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