RBI Governor Shaktikanta Das may secure third term

RBI Governor Shaktikanta Das may secure third term

Reserve Bank of India Governor Shaktikanta Das may continue in his current position once his tenure ends in December.

According to highly placed people aware of the matter, Das is seen as a strong candidate who has handled a sensitive position well.

What is unclear at this juncture is whether he would get a full three-year term. “It is anticipated that he would continue office for two more years after his current term ends on December 12,” said a person with knowledge of the matter.

Another person said details of a potential third term for Das are under consideration and may be announced soon.

“A recommendation from the Ministry of Finance for the reappointment of Das as RBI Governor has been furnished to the Appointments Committee of Cabinet (ACC). The final decision on this matter is expected soon,” said another person aware of the matter.

The people cited say that as the code of conduct was in place until recently for the state elections in Maharashtra and Jharkhand, it may have delayed the process of reappointing Das as RBI Governor.

With the results of both state elections announced on November 23, a final call on appointing the governor of RBI is anticipated in a week or so.

Spokespersons for the finance ministry and RBI did not respond to queries sent by mail. This story will be updated once they respond.

Reuters was the first to report on November 18 that Das was likely to continue as governor.

The Appointments Committee of the Cabinet (ACC) is part of the Prime Minister’s Office, which handles the appointment of the RBI Governor.

If reappointed, Das would be the second RBI governor whose term has been extended twice. If he gets an extension beyond a year, that will make him one of the longest-serving RBI chiefs.

Das succeeded Urjit Patel as governor and assumed office on December 12, 2018. He was reappointed for a second term after he completed three years as governor in December 2021. For the second year in a row, Das was awarded the top central banker by Global Finance in 2024 and was rated A+ for his leadership in steering the RBI through challenging economic situations.