Shaktikanta Das has been reappointed as the Reserve Bank of India (RBI) governor for another three years. Das' re-appointment ensures continuity at a critical juncture for the economy that has gone through one of its worst periods during the COVID-19 pandemic since March 2020.

A Cabinet committee for appointments on Thursday approved the reappointment of Das, whose tenure was about to end on December 10 this year, as the governor of RBI.

“The Appointments Committee of the Cabinet has approved the reappointment of Shri Shaktikanta Das, lAS Retd. (TN:80) as Governor, Reserve Bank of India for a period of three years beyond 10.12.2021 or until further orders, whichever is earlier," said a statement.

Shaktikanta Das is the 5th governor of 25 to get a tenure this long. Usually, RBI governors are given a five-year term.

Before him, Bimal Jalan served as RBI governor for six years, from November 1997 to September 2003. Other governors who served for six years were James Taylor (1937-1943), and CD Deshmukh (August 1943-June 1949). BR Rau was the only governor who was in office for 8 years (July 1949 to Jan 1957). Das' predecessors were Urjit Patel and Raghuram Rajan.

Das gets credit for navigating the economy through one of its toughest periods. Under Shaktikanta Das, RBI announced more than 50 relief measures to mitigate COVID impact between March 2020 and August 2021. Under Das, RBI brought down rates to a historic low of 4 percent and kept liquidity in surplus to smoothen the pain.

From a quick rescue of Yes Bank to the takeover of DHFL and its successful resolution under IBC to managing the PMC Bank fiasco to pave way for its takeover, RBI under Shaktikanta Das has been taking swift action to protect depositors and preserve financial stability.

Some of the key reforms under Das include introduction of scale-based regulation of NBFCs, bringing the regulation of HFCs and Co-Op banks under RBI, overhauled MFI regulations, capping the tenure of private bank CEOs, introducing a regulatory sandbox for fintech, giving out account aggregator licence among others.

Going ahead, Das faces steep challenges, one of which, is to bring the policy back to normal. Das will also have to strategise draining out excess liquidity without rocking the boat besides the several tasks on the regulation front including privatisation of PSBs.

Das holds graduation and post-graduation degrees in History from Delhi University and pursued a financial management course from IIM Bangalore.

First Published:Oct 29, 2021 7:35 AM IST