Even as speculation over an extension for Reserve Bank of India (RBI) governor Shaktikanta Das intensifies, the governor met finance minister Nirmala Sitharaman at North Block on Saturday for about half an hour. Das later told FE that it was only a “courtesy meeting”, refusing to divulge any other details.
Das has served as central bank governor for six years, having already surpassed the typical five-year tenure, a standard in recent decades. His term comes to an end on December 10. In case he gets an extension, an announcement is expected to be made by Monday. This will also make him the longest serving RBI governor since Benegal Rama Rau, who held the position for seven and a half years from 1949 to 1957, while Bimal Jalan came close to the milestone by being governor between November 1997 and September 2003.
Multiple reports have said Das’s tenure is likely to be extended, at least for a year, as the Central government has no other candidate in sight for the post at this point.
Das’s appointment as 25th governor came after the controversial exit of his predecessor, Urjit Patel, when the RBI and the government differed over issues like fiscal policy and banking regulations.
Das took charge with a conciliatory yet firm approach, emphasising the RBI’s autonomy while maintaining open lines of communication with the government.
One of Das’s defining challenges was the economic crisis triggered by the Covid pandemic.
Under his leadership, the RBI implemented unprecedented monetary easing, slashed the repo rate to a historic low of 4% in 2020, and introduced measures like loan moratoriums and liquidity infusion packages.
Das’s tenure has seen a delicate balancing act between fostering growth and controlling inflation, especially amid global pressures like rising crude oil prices and geopolitical tensions.
Despite global headwinds and supply-chain disruptions, Das has largely managed to bring down inflation through monetary policy interventions. From hitting the peak of 7.79% in April 2022, CPI inflation has cooled and is hovering in the range of 5-6%. His policies have balanced the dual objectives of controlling inflation and fostering economic growth.