‘Immensely grateful…’: Shaktikanta Das thanks PM Modi, FM Sitharaman, RBI team on last day in office

Outgoing Reserve Bank of India (RBI) Governor Shaktikanta Das thanked Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and his team at the central bank on his last day in office. Das will be replaced by career civil servant and revenue secretary to the finance ministry Sanjay Malhotra as the apex bank chief. Malhotra’s appointment for three years came amid expectations of an extension of Das’ term. 

“Will demit office as Governor RBI later today. Thank you everyone for your support and good wishes,” said Das as he thanked Modi and Sitharaman. Das said he benefitted a lot from PM Modi’s guidance and thoughts. 

Das, thanking Sitharaman for her support, said, “The fiscal-monetary coordination was at its best and helped us to deal with the multiple challenges during the last six years.”

“I thank all the stakeholders in the financial sector and in the economy; experts and economists; industry bodies and associations; organisations in the agriculture,cooperative & service sectors for their inputs and policy suggestions. A BIG thank you to the entire Team RBI. Together, we successfully navigated an exceptionally difficult period of unprecedented global shocks. May the RBI grow even taller as an institution of trust and credibility. My best wishes to each one of you,” said Das in a series of tweets. 

SHAKTIKANTA DAS’ TENURE AS RBI CHIEF

Das had assumed office in December 2018, and has been widely credited for overseeing a period of recovery in India's financial sector. Under Das, the central bank has been seen as more interventionist under Das, stamping down exchange rate volatility to decade lows. 

The outgoing RBI chief navigated the apex bank through a volatile period marked by the pandemic, geopolitical tensions, and surging inflation. 

During his tenure, India’s foreign exchange reserves soared to $700 billion. 

However, his exit comes amid mounting economic pressures. The RBI recently lowered its 2024-25 GDP growth projection to 6.6 per cent from 7.2 per cent, reflecting concerns over slowing growth and global uncertainties. Retail inflation hit a 14-month high of 6.2 per cent in October, breaching the central bank’s tolerance band.

“There has been a shift in inflation and growth dynamics since October,” Das acknowledged, reiterating the Monetary Policy Committee’s (MPC) commitment to balancing these forces. The MPC, in its latest review, kept the repo rate unchanged at 6.5 per cent, extending the status quo for the 11th consecutive time.

Das’s leadership, marked by seamless coordination between fiscal and monetary policies, contrasts sharply with the frictions preceding his tenure. A former finance ministry secretary, Das has leveraged his experience crafting eight Union Budgets and representing India at global institutions like the IMF, World Bank, and G20.