On eve of Shaktikanta Das’s second stint, a look at his time as RBI Governor so far

The decision was announced late Thursday after it got approval from the appointments committee of the cabinet.

Das, aged 64, will now have to guide the economy as the central bank begins the process of normalization after one-and-a-half years of making the system flush with excess liquidity. RBI under Das prioritised economic growth over inflation by slashing interest rates and ensuring quantitative easing.

Centre extends RBI governor Shaktikanta Das’ term for another 3 years

The Centre has extended RBI governor Shaktikanta Das’ term for another three years. He will now serve till 2024. Das had replaced Urjit Patel on December 12, 2018, as the 25th governor of the Reserve Bank of India.The Appointments Committee of the Cabinet approved the reappointment beyond 10.12.2021 for three years or until further orders, whichever is earlier.Das, a 1980 batch IAS officer from the Tamil Nadu cadre, was the economic affairs secretary till May 2017. He took over from Patel after he stepped down abruptly before the end of his tenure.

“We are reaching the shore after sailing through a very turbulent journey, and we cannot afford to rock the boat at this crucial stage. We must ensure that we reach safely to begin the journey beyond the shore,” Das had said at the last monetary policy committee meeting. “In parallel, we remain laser-focused to bring back the CPI inflation to 4 per cent over a period of time in a non-disruptive manner.

RBI projected the economy to grow 9.5% in FY22 — the highest among major economies — after contracting 7.3% last year. The central bank would now need to check price rises at the time of economic expansion

“It is felt that continued monetary support is necessary as the economic recovery process even now is delicately poised and growth is yet to take firmer roots,” Das had said.

India’s retail inflation measured by Consumer Price Index eased to a five-month low of 4.35% in September from 5.3% in August as food inflation declined sharply. The index of industrial production for August surged 11.9%.

Das, who was economic affairs secretary during Prime Minister Narendra Modi’s move to ban high-value currency notes in November 2016, took charge as the 25th RBI Governor on December 12, 2018, barely a day after Urjit Patel suddenly called in a day amid controversies over central bank’s autonomy. Das was a 1980 batch Indian Administrative Service officer. A bureaucrat for 38 years, Das held important positions in the central and state governments in the areas of finance, taxation, industries and infrastructure.

After retiring as economic affairs secretary, he worked as a member of the Fifteenth Finance Commission and G20 Sherpa of India.

Das also served as India’s Alternate Governor in the World Bank, Asian Development Bank, New Development Bank and Asian Infrastructure Investment Bank. He also represented India in international fora like the IMF, BRICS and SAARC.

A postgraduate in history from Delhi’s St. Stephen’s College, he was conferred the ‘Central Banker of the Year, Asia-Pacific 2020’ award by the London based magazine-The Banker.