Mon Dec 09 17:11:32 UTC 2024: ## Revenue Secretary Sanjay Malhotra Appointed New RBI Governor

**Mumbai, India** – The Indian government has appointed Sanjay Malhotra, currently Revenue Secretary, as the new Governor of the Reserve Bank of India (RBI). Malhotra, a 1990-batch Indian Administrative Service officer, will assume his new role on December 11th, a day before the release of crucial November inflation data. This appointment follows the end of Shaktikanta Das’ six-year term on December 13th.

Malhotra takes the reins at a time of economic uncertainty. Inflation remains stubbornly high, reaching a 14-month high of 6.21% in October, driven largely by food prices. While analysts predict a slight easing to around 5% in November, the persistent pressure has prevented the Monetary Policy Committee (MPC) from cutting interest rates despite government calls for a review. The MPC recently opted instead for a cash reserve ratio cut to alleviate liquidity stress.

The RBI has revised its inflation projection upwards for FY25, and Malhotra will face the challenge of balancing inflation control with the need to stimulate economic growth, which slowed in the second quarter of the fiscal year. Analysts remain hopeful for a rate cut at the MPC’s February meeting, pending further economic data, including the advance GDP estimates and the Union Budget 2025-26. Global economic factors, particularly potential US trade policies under a new administration, will also influence the RBI’s decisions.

Malhotra’s extensive 33-year career, particularly his recent experience managing tax policy and collections as Revenue Secretary, is expected to serve him well in his new role. His predecessor, Shaktikanta Das, is credited with successfully navigating the RBI through the COVID-19 pandemic.

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