Former RBI Governor Shaktikanta Das appointed Principal Secretary-2 to PM Modi
- Former RBI Governor Shaktikanta Das is among the longest-serving governors of the central bank. He took the post in 2018 following the departure of his predecessor, Urijit Patel.
Former Reserve Bank of India (RBI) Governor Shaktikanta Das has been appointed Prime Minister Narendra Modi's Principal Secretary-2. P K Mishra, a retired IAS officer of the Gujarat cadre, currently serves as PM Modi's principal secretary. Das's appointment will be the first when two officials will serve as prime secretaries to the PM. Both Mishra and Das are from Odisha.
According to a notification released by the government's Appointments Committee of the Cabinet (ACC) on Saturday, February 22, former RBI Governor Shaktikanta Das' appointment as the second Principal Secretary ‘'will be co-terminus with the prime minister's term or until further orders''.
“The Appointments Committee of the Cabinet approved the appointment of Shri Shaktikanta Das, IAS (Retired), as Principal Secretary-2 to Prime Minister, effective from the date he assumes office. His appointment will be co-terminus with the PM's term or until further orders, whichever is earlier,” said the ACC official notification today.
Shaktikanta Das' tenure as RBI Governor
Das is a civil servant with 44 years of service, primarily in finance, taxation, investment, and infrastructure. He was the government's revenue secretary. During his tenure as the economic affairs secretary in 2016, the Modi government announced demonetisation to curb fake currency.
Das played a key role in combining multiple indirect taxes into one GST, which came into effect on July 1, 2017. During his long tenure in the Ministry of Finance, he was directly involved in preparing eight Union Budgets.
Post-retirement, Das was appointed a member of the 15th Finance Commission and G20 Sherpa of India. He joined RBI in 2018 to become the 25th RBI Governor after the resignation of his predecessor, Urijit Patel. Initially appointed for three years, his tenure was extended to three more years in 2021.
Das became the second longest-serving governor of the RBI in its 90-year history after Benegal Rama Rau, who had a seven-and-a-half-year tenure in the 1950s. He stepped down from his RBI chief position on December 10, 2024, when Sanjay Malhotra was appointed as the new RBI governor.
As the RBI chief, one of his first actions was to set up a committee under former RBI Governor Bimal Jalan to review the central bank's economic capital framework, including the size of capital reserves RBI must hold. Following the committee's suggestions, the RBI has been transferring its surplus to the Centre each year.
As the RBI governor, he focused on maintaining financial stability, curbing inflation, and promoting economic growth. He took measures to address the liquidity crunch in the non-banking financial sector and strengthened the regulatory framework for banks and non-banking financial companies.
Das built one of the world’s biggest foreign currency stockpiles and always intervened to stabilise the rupee. His role as RBI Governor was pivotal in navigating India through critical financial challenges, including the COVID-19 pandemic and the subsequent economic recovery. As a key policymaker, he faced challenges in managing the disruptions caused by the lockdown.
Das cut the benchmark repo rate to a historic low of four per cent, continuing with the low-interest rate regime for almost two years to help the economy badly hit by the lockdown. During his tenure, the RBI handed over the highest-ever dividend of ₹2.11 lakh crore to the Centre for 2023-24.
His tenure at the central bank was marked by bold and decisive monetary policies and effective crisis management, earning him widespread acclaim within government circles and the financial sector. He was also conferred with the 'Central Bank Governor of the Year' award by Central Banking, UK.
Das also served as India's Alternate Governor in the World Bank, Asian Development Bank (ADB), New Development Bank (NDB), and Asian Infrastructure Investment Bank (AIIB). He represented India in several international forums, including the IMF, G20, BRICS and SAARC.
In his new role as Principal Secretary-2, he will advise PM Modi on local and foreign policies. Das, who turns 68 on February 26, is an IAS officer from the 1980 batch. He holds a Master's degree in history from Delhi's St Stephen's College and a postgraduate degree in public administration from the University of Birmingham.
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