Will Shaktikanta Das continue as RBI Governor? Decision expected soon
What's the story
The Indian government is all set to announce its decision on the appointment of a new Reserve Bank of India (RBI) governor or the extension of incumbent Governor Shaktikanta Das's term.
The announcement is due today as Das's current three-year term ends tomorrow.
Speculation around this decision has been rife over the past month, especially after Das's recent visit to Delhi.
Visit implications
Das's Delhi visit sparks speculation
Das's Delhi visit has led to speculation that it may be in connection with his term extension talks or a farewell visit.
This speculation is furthered by the fact that former RBI governors were informed about their term extensions much ahead of time.
For example, Bimal Jalan was informed four months in advance, D Subbarao a month before, and Das himself weeks ahead of his last extension in 2021.
Tenure review
Das's tenure and potential successors
Having served as RBI governor for six years, Das is the second-longest-serving person in the role after Benegal Rama Rau, who held the post for seven and a half years in the 1950s.
Despite getting extensions, both Jalan and RN Malhotra opted to resign early.
The delay in announcing an extension or successor has fueled speculation about candidates such as DEA Secretary Ajay Seth, CEA Anantha Nageswaran, and a current RBI deputy governor.
Decision authority
PM to decide on RBI governor's appointment
The final call on the appointment of the RBI governor lies with the Prime Minister, a position considered too important for committee discussions.
This is similar to the process of appointing the finance minister, where the decision rests solely with the PM.
Currently, there is no official word on any possible successors or an extension for Das.