All eyes on govt as RBI Guv Das, Dy Guv Patra's terms near expiry

Govt extends M Rajeshwar Rao's term by one year

With the central government extending Reserve Bank of India (RBI) deputy governor M Rajeshwar Rao's term by one year, it remains to be seen whether it will also extend the terms of RBI governor Shaktikanta Das and deputy governor Michael Debabrata Patra, which are set to end in December 2024 and January 2025, respectively.

In December 2021, Das was given a three-year extension, which comes to an end in December 2024. He was initially appointed governor for a period of three years in December 2018.

Meanwhile, Patra’s second one-term as deputy governor is set to end in January 2025. He was previously granted a one-year extension until January 2024. He had completed his initial three-year term from January 2020 to January 2023.

Patra has been part of the monetary policy committee (MPC) since its inception.

Initially, he served as a central board-nominated member when he was an executive director, and currently as deputy governor in charge of monetary policy.

RBI currently has four deputy governors, including Patra, Rao, T Rabi Sankar, and Swaminathan J.

Last week, the appointments committee of the Cabinet, which is headed by the Prime Minister, in a notification said it has approved the re-appointment of Rao for a period of one year. It is effective from October 9, 2024, or until further orders, whichever is earlier.

This is the second one-year extension for Rao.

Previously, his term as deputy governor of RBI was extended by the government for one year, with effect from October 9, 2023.

Rao was initially appointed deputy governor of RBI for a period of three years in October 2020.