How is the RBI Governor appointed?

Sanjay Malhotra on Monday was appointed as the 26th Governor of the Reserve Bank of India as current Governor Shaktikanta Das' term ends on Tuesday.

Malhotra, a 1990 Batch Rajasthan Cadre IAS Officer, will assume office on December 11, 2024 for a period of three years, the appointment committee of the cabinet said in a notification. His appointment comes at a critical juncture as the RBI battles challenges like inflation control and slowing down of economic growth.



Malhotra is currently serving as Secretary (Revenue) in the Ministry of Finance. Previously, he held the position of Secretary in the Department of Financial Services.

How is the RBI Governor appointed?

The governor is appointed as the the RBI Act, 1934. The law states that the chief is appointed by the Central government.

The Financial Sector Regulatory Appointment Search Committee, consisting Cabinet Secretary, current RBI Governor, Financial Services Secretary and two independent members, prepares a list of people eligible to hold the post.


Next, the shortlisted candidates are interviewed and sent to the Cabinet Committee on Appointments, which is headed by the Prime Minister. The committee selects the governor through confirmation of the appointment. The

The governor holds office for periods not exceeding five years. The term of the governor may be fixed by the government at the time of his appointment. The central bank chief is is eligible for reappointment or extension.

RBI Governor qualifications

The RBI Act, 1934 does not mention any specific qualification for the governor. People with different educational backgrounds were selected to head the institution.

However, the governor traditionally is either a civil services personnel or an economists.