Context:
Sanjay Malhotra will replace Shaktikanta Das as the 26th Governor of Reserve Bank of India, according to a notification from the government’s Cabinet Appointments Committee on Monday.
Process of RBI Governor Appointment in India
- This is a political exercise wherein the governor is appointed by the Prime Minister’s Office after looking into the views of the finance ministry and the outgoing governor.
- FSRASC, which is headed by the Cabinet Secretary, recommends the name for appointing a governor.
- In case the governor is not available, the deputy governor nominated by the governor would take over.
- The term of office would be fixed at five years for Governors and Deputy Governors and could also be determined by the discretion of the Government.
- They can be reappointed or given extension.
- Qualifications: The RBI Act did not specify any specific qualifications which was necessary for a Governor; they have been traditionally drawn either from the civil services personnel or from an Economist.
- The salaries and allowances to which the Governors and Deputy Governors shall be entitled should be fixed by the Central Board with the previous sanction of the Central Government.
