the new Governor of the Reserve Bank of India (RBI): Sanjay Malhotra 

The government has appointed Revenue Secretary Sanjay Malhotra as the new Governor of the Reserve Bank of India (RBI). He will be the 26th Governor of RBI and will replace the current Governor Shaktikanta Das.

The appointment of the Governor of the Reserve Bank of India (RBI) is governed by the provisions of the Reserve Bank of India Act, 1934 and involves a process largely determined by the Government of India.

Key Provisions and Process:

1. Authority to Appoint:
   • The Governor of the RBI is appointed by the Central Government under Section 8 of the RBI Act, 1934.
2. Eligibility:
   • There are no explicit qualifications mentioned in the Act for the position of RBI Governor. However, the appointee is typically an individual with extensive experience in banking, finance, economics, or public administration.
3. Term of Office:
   • The Governor is usually appointed for a term of 3 years, but the term can be extended at the discretion of the government.
4. Appointment Process:
   • The appointment is made based on recommendations by the Appointments Committee of the Cabinet (ACC), headed by the Prime Minister.
   • The Finance Ministry plays a significant role in suggesting candidates for the post.
5. Role of the Governor:
   • The Governor acts as the chief executive of the RBI, overseeing its operations, implementing monetary policies, and representing the RBI in domestic and international forums.
6. Conditions of Service:
   • The salary and conditions of service for the RBI Governor are determined by the Central Government and notified in the official gazette.
7. Removal:
   • The RBI Act allows the Central Government to remove the Governor without providing specific reasons in the Act, making the position subject to the government’s discretion.

Recent Appointments:

Appointments of RBI Governors, such as Shaktikanta Das (current Governor since December 2018), reflect the preference for individuals with a strong background in economics and governance, often former bureaucrats or economists.

This structure balances the independence of the RBI with the policy objectives of the government. However, the lack of explicit qualifications and the discretion of the government in appointment and removal often attract debates about autonomy and transparency.