Shaktikanta Das, Point-Man for Demonetisation, is New RBI Governor (Download PDF)

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Former finance ministry official Shaktikanta Das as governor of the Reserve Bank of India, a day after former central bank boss Urjit Patel resigned abruptly. According to a government statement released, he will be given a three-year-tenure.

Image of government statement

Image of Government Statement

Image of government statement

About Shaktikanta Das

  • A former finance secretary and current member of the 15th finance commission, shot into the public spotlight in late 2016 when he became the bureaucratic face of demonetization in the weeks following the note-ban decision.

  • A 1980 batch IAS officer from the Tamil Nadu cadre and currently also represents India at the G-20 in a role of a Sherpa.

  • Modi brought in Das initially to head up the revenue department in the finance ministry before moving him to economic affairs, where he helped lead the charge on demonetisation’s implementation in late 2016.

  • Das was the economic affairs secretary till May 2017.

  • In the weeks after demonetisation, he became a familiar face during government press conferences where he pushed the Centre’s line that banning Rs. 500 and Rs. 1,000 notes would crack down on the black economy, reduce counterfeit money and spur digital payments.

  • In February 2017, he gave a speech that predicted that the positive effects of demonetisation would be felt from April 2017. He also down-played the negative consequences of demonetisation, saying that “from the next quarter, long-term and medium benefits and outcomes are going to be very positive”.

  • He is known as an experienced bureaucrat who has held key positions both under the ruling Bharatiya Janata Party as well the previous Indian National Congress-led government, Reuters reported.

Urjit Patel’s Shocking Resignation

  • The appointment of Das comes on the heels of Patel’s surprising resignation and nearly a three-month public stand-off between the Modi government and the RBI over a host of issues.

  • The first order of business for Das will be the upcoming RBI board meeting on December 14 where discussion over hot-button issues such as the size of the central bank’s balance sheet and its governance structure will take place.

  • Before resigning, Patel had opposed the Modi government on both accounts; handing over the RBI’s contingency reserves and giving more operational powers to the central bank’s board.

  • According to RBI board member, the agenda for the upcoming meeting has already been circulated.

RBI

  • The Reserve Bank of India is India’s central banking institution, which controls the issuance and supply of the Indian rupee.

  • Until the Monetary Policy Committee was established in 2016, it also controlled monetary policy in India.

  • Headquarters: Mumbai

  • Founder: British Raj

  • Founded: 1 April 1935, Kolkata

  • Subsidiary: National Housing Bank

- Published/Last Modified on: March 18, 2019

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