All eyes on whether RBI Governor Das gets another extension 

With less than a month to go of Reserve Bank of India Governor Shaktikanta Das’s six-year tenure, all eyes are on whether he will get another extension. His term is set to come to an end on December 10. 

As of now, there is no indication on this matter, sources said, but pointed out that there has been no appointment process and nor are any potential candidates being scouted. “There is no clarity at all on the RBI Governor’s term. The decision is still under wraps,” two top sources said. 

Prime Minister Narendra Modi has been known to continue with key appointments during his third term with no major ministerial reshuffle as well. A decision is expected in the coming weeks by the Appointments Committee of Cabinet. 

Das, former Secretary, Department of Revenue and Department of Economic Affairs, Ministry of Finance, Government of India, assumed charge as the 25th Governor of the RBI on December 12, 2018. Prior to the appointment, he was serving as Member, 15th Finance Commission, and as India’s G20 Sherpa. 

He took over at the RBI after the sudden resignation of Urjit Patel as RBI Governor. Das’s term was later extended by three years. Das helmed the RBI during the Covid-19 pandemic and ensured stability in the markets. 

As RBI Governor, Das chairs the RBI’s Monetary Policy Committee, which is set to meet from December 4 to 6. While analysts believe a rate cut by the MPC is likely to be delayed into early 2025, they are keenly awaiting the announcement on the Governor’s term. 

The Centre has recently appointed three members to the MPC, including Ram Singh, Saugata Bhattacharya and Nagesh Kumar. RBI Deputy Governor Michael Patra, who is also a member of the MPC, is likely to step down in January 2025 and the RBI has invited applications for the DG’s post. 

In October this year, Das was ranked as the top central banker by the US-based Global Finance magazine for a second year in a row and received the award for A+ grade in Central Bank Report Cards 2024. 

Prime Minister Narendra Modi has also congratulated the RBI Governor for the award. "Congratulations to RBI Governor Shri @DasShaktikanta for this feat, and that too for the second time. This is a recognition of his leadership at the RBI and his work towards ensuring economic growth and stability," the PM had said on X.