look news india
Sanjay Malhotra will replace Shaktikanta Das as the Governor of the Reserve Bank of India (RBI) with effect from tomorrow, December 11. Then they will have to face the triple challenge of growth, inflation and value of rupee against the dollar.
Current Governor Shaktikanta Das is still struggling with these problems even as his tenure is about to end. While these three biggest issues exist, they also have to deal with regulatory reforms impacting bank lending, curbing digital fraud and mis-selling of retail financial products. The Appointments Committee of the Union Cabinet approved Sanjay Malhotra, a 1990 Rajasthan cadre IAS officer and currently serving as the Secretary, Department of Revenue, as the 26th Governor of RBI. His tenure will be for three years from December 11.
From a regulatory perspective, Malhotra will face the challenge of implementing major regulatory changes. This includes requiring banks to make provisions for bad loans based on expected credit losses. Which will impact their bottom line as well as their ability to finance in the short term but will put them in a better position to face a default problem in the future.
From a retail perspective, the banking system has taken major steps on the digital front. One side effect of this is the increase in online fraud. Also, from a retail perspective, mis-selling by banks and insurance companies and other financial products is also a big problem. On which control is necessary. The rupee has fallen significantly against the dollar since Donald Trump became the new President of America. The dollar has strengthened considerably against the rupee. Along with this, there is also a strong possibility of America’s Central Bank cutting interest rates to support investment.
Information about Sanjay Malhotra
Sanjay Malhotra, 56, has a bachelor’s degree in computer science from IIT Kanpur and a master’s degree in public policy from Princeton.
He served as Revenue Secretary from October 2022, Secretary of Financial Services, Government Nominee to RBI Board, CMD of Infra Finance.
Sanjay Malhotra is said to be a low-profile, observant and sharp-witted person.
Challenges before Sanjay Malhotra
To achieve four percent inflation target while maintaining a balance between growth and inflation.
Maintaining the value of the rupee against the dollar after Trump takes power
Ensuring flow of credit to industry at a time of risk on bank balance sheets