Union government names Revenue Secretary Sanjay Malhotra as RBI Governor.

Tags: Person in news

Union government names Revenue Secretary Sanjay Malhotra as RBI Governor.

Why in the news?

• Revenue Secretary Sanjay Malhotra has been appointed as the new RBI Governor replacing Shaktikant Daswhose tenure ends on December 10, 2024.

About Sanjay Malhotra:

• Sanjay Malhotra will be the 26th Governor of the Reserve Bank of India.
• A 1990-batch officer of the Indian Administrative Service of the Rajasthan cadre, Mr. Malhotra is acomputer science engineering graduatefrom the Indian Institute of Technology, Kanpur, and has a Master’s degree in Public Policy from Princeton University, U.S.A.
•  He will take charge of the country’s monetary policy framework and banking regulation at Mint Street on December 11.

About RBI:

• The Reserve Bank of India (RBI) is the central bank of India whose primary function is to manage and govern the financial system of the country.
• The Reserve Bank of India (RBI) was established based on the recommendations of theRoyal Commission on Indian Currency and Finance, also known as the Hilton-Young Commission.
• The RBI was established in1934 by the Reserve Bank of India Act and began operations on April 1, 1935,and has beenlocated in Mumbai.
• The RBI is controlled by the Government of India and comes under the Ministry of Finance. 
• The RBI Governor is appointed by the Central government.
• The RBI's Monetary Policy Committee (MPC) is led by the RBI Governor.
•  The MPC is made up ofsix members: three officials of the RBI and three external members nominated by the government of India. 

Function of RBI:

• The central bank regulates the issue and supply of the Indian rupee. 
• It also looks after the central government’s money.
• The central bank plays the role of the bankers’ bank and regulates the banking sector.
• It also plays an important role in India’s development story by supporting the government in its developmental projects and policies.