The central government is likely to extend the term of Reserve Bank of India (RBI) governor Shaktikanta Das for a second time, three sources with direct knowledge of the matter told Reuters. This move would make him the longest-serving chief of India’s central bank since the 1960s.
Before being appointed as the RBI Governor in December 2018, Das was one of the most trusted officials in Prime Minister Modi’s administration, especially during a period when the government-regulator relationship was fraught with tensions.
Das, whose current term is due to end on Dec. 10, has already been the RBI’s governor for longer than the typical five-year maximum of recent decades and a further extension would make him the longest-serving since Benegal Rama Rau, who filled the role for 7-1/2 years between 1949 and 1957.
Two government sources with direct knowledge of the matter told Reuters that no other candidates are being considered at this point nor had any selection committee been set up, with Das’ term likely to be extended for at least another year.
The decision is due to be announced after polling in Maharashtra state elections is complete, a third source, also with direct knowledge of the matter said.
The Election Commission of India prohibits the ruling party from making temporary appointments that might influence voter behaviour.
“The three sources, who did not wish to be identified due to the confidential nature of the matter, said the final decision would be taken by the Prime Minister,” the Reuters report says.
(With Reuters inputs)
