Speculation has been rife for a month, intensifying over the weekend after Das visited Delhi. Sources suggest the visit could be linked to discussions on his extension or possibly as a courtesy call to acknowledge his work.
Extensions for previous RBI governors have typically been communicated well in advance. For example, Bimal Jalan was informed four months ahead, D Subbarao a month prior, and Das himself was notified weeks before his last extension in 2021. The delay this time has raised questions about whether an extension is on the table.
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Governor Das has served six years, making him the second-longest-serving RBI governor after Benegal Rama Rau, who held the position for seven and a half years in the 1950s. While Bimal Jalan and RN Malhotra also received extensions, both chose to step down early.
The delay in the announcement has sparked speculation. Some suggest the government may have avoided announcing an extension before the monetary policy meeting to prevent Das from making commitments on inflation or growth for the long term, knowing he might not remain in the role.
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Meanwhile, several names have emerged as potential successors, including DEA Secretary Ajay Seth, CEA Anantha Nageswaran, and a current RBI deputy governor. However, there is no official confirmation on any of these.
The Prime Minister makes the final decision on the appointment of the RBI governor, a role considered too critical for committee deliberations.
Much like the finance minister’s selection, this decision rests solely with the PM.
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(Edited by : Shweta Mungre)
First Published: Dec 9, 2024 11:29 AM IST
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