The government has appointed Rohit Jain as the new lieutenant governor Reserve Bank of India for a three-year term.
Jain succeeds T Rabi Sankar, whose extended tenure ended this Saturday.
The Appointments Committee of the Cabinet approved his selection for a three-year term effective from his commencement date of May 3 or later.
Jain currently serves as the company’s managing director Reserve Bank of India (RBI).
Read also | Bank deposit risk: What happens to your money if the lender doesn’t return it?
As she ordered According to the RBI Act of 1934, the central bank has to maintain four deputy governors: two in-house representatives, one commercial banking specialist and an economist to oversee the monetary policy division.
The remaining three Deputy Governors currently in office are Swaminathan J, Poonam Gupta and SC Murmu.
Rabi Sankar initially assumed the role of Deputy Governor in September 2021 for three years and subsequently received one-year extensions in 2024 and 2025.
The Reserve Bank of India was established on 1 April 1935 under the statutory mandates laid down by the Reserve Bank of India Act, 1934.
The headquarters of the institution were first located in Calcutta before being permanently shifted to Bombay in 1937. This headquarters serves as the governor’s base and the main place for policy development.
While the Reserve Bank began as a private entity, it has been wholly owned by the Government of India since its nationalization in 1949.
The RBI controls the issuance of bank notes and maintains reserves to ensure India’s monetary stability, while overseeing the country’s monetary and credit systems to its advantage.
It uses the current structure of monetary policy to navigate a sophisticated economy with the goal of maintaining price stability while supporting the broader goals of economic growth.
The RBI seeks to maintain adequate liquidity within the banking network to meet the productive needs of the economy – including the needs of the rural sector – while ensuring that market rate transmission remains effective.
RBI governor urges banks to ensure fair access to financial market
Central Bank Governor Sanjay Malhotra on Friday urged banks and primary dealers to ensure that every participant has fair and clear access to financial markets.
At a conference in Amsterdam, Sanjay Malhotra said that market actors must accept the duty to ensure that broad regulatory objectives are achieved “in letter and spirit” in pursuit of corporate interests.
He noted that banks and market participants must ensure that every user has easy access to financial markets and can trade on fair and open terms, regardless of their scale or expertise.
His comments come as the RBI continues its work on maturing India’s financial markets, widening participation, strengthening market systems and increasing transparency.
Read also | Sovereign Gold Bonds: Announcement of Redemption Price for Series 2018
- The governor further said that India’s foreign exchange reserves are sufficient to cover around 11 months of imports.
- The current account deficit is seen as manageable, with rising energy costs expected to widen, although recent trade deals are expected to offset some of that effect, he said.
- At the beginning of April, Reuters announced that India’s central bank was investigating techniques used by major banks to close arbitrage positions in the rupee amid concerns the trades were breaking rules and hampering efforts to stabilize the currency.
