RBI Governor Shaktikanta Das likely to get extension, announcement expected after Maharashtra Election

India's central bank governor Shaktikanta Das is likely to get a second term extension, sources with direct knowledge of the matter told Reuters. If confirmed, this unprecedented move would make Das the longest-serving Reserve Bank of India (RBI) chief since the 1960s, as per Reuters.

Das, appointed in December 2018, stepped into the role during strained relations between the government and the RBI. He has since emerged as a trusted figure in Prime Minister Narendra Modi’s administration. His current term ends on December 10, but insiders say his leadership is expected to continue for at least another year, the Reuters report added.

Announcement likely after Maharashtra elections

"No other candidates are being considered, and no selection committee has been formed," said one government source, as quoted by Reuters.

This signals a strong likelihood that Das will remain in office. Another source indicated that the official announcement will be made after the Maharashtra state elections to comply with Election Commission regulations, which bar major appointments during polling periods, as per the report by Reuters.

Das has already surpassed the usual five-year term limit observed in recent decades. An additional extension would see him serve longer than any RBI governor since Benegal Rama Rau, who led the central bank for over seven years between 1949 and 1957, per the Reuters report.

The Prime Minister's Office, Finance Ministry, and the RBI have not responded to requests for comment. The sources, who spoke on condition of anonymity, emphasised that the final decision rests with Prime Minister Modi, as per the report by Reuters.

Das’ leadership has been marked by significant challenges, including navigating the economy through the pandemic, inflationary pressures, and global financial uncertainties. His extension reflects the government’s confidence in his steady hand during turbulent times, according to the report.

(With Inputs from Reuters)