Sanjay Malhotra: India's New RBI Governor Takes Charge

Professional Journey and Credentials

• Sanjay Malhotra, 1990-batch IAS officer from the Rajasthan cadre with an impressive 33-year administrative career
• Computer Science Engineering graduate from IIT Kanpur and Master's in Public Policy from Princeton University
• Extensive experience across diverse sectors including finance, taxation, power, IT, and mining
• Held critical positions such as Revenue Secretary and Secretary in the Department of Financial Services
• Led Rural Electrification Corporation Limited as Chairman and Managing Director
• Known for driving significant policy reforms and enhancing tax collections

Key Challenges and Expectations

• Taking over RBI leadership at a challenging economic period with:
  • Inflation persistently above the 4% median target for about five years
  • Economic growth slowing to 5.4% in the July-September quarter
  • Increasing market expectations for potential interest rate cuts
• Expected to balance controlling inflation and ensuring steady economic growth
• Will conduct his first monetary policy review from February 5-7, 2025
• Inheriting the legacy of predecessor Shaktikanta Das, who stabilized markets during critical transitions

Strategic Approach and Background

• Brings a unique blend of technical and policy expertise
• Proven track record in managing complex fiscal and financial frameworks
• Instrumental in shaping GST system as ex-officio Secretary to the GST Council
• Managed government's non-tax revenue streams, including service fees and PSU dividends
• Known for a balanced approach to economic policymaking
• Strong analytical skills demonstrated through leadership in multiple critical sectors
• Markets have already responded to his appointment, with bond yields fluctuating and traders anticipating potential policy changes
• Commitment to broader economic interests, as evidenced by recent statements encouraging tax officials to focus beyond revenue collection