Continuity with change, and change with continuity

Mint Road saw a new incumbent at the helm, followed through on its regulatory and governance initiatives even as the wait continues on a few fronts,

- RAGHU MOHAN

The 26th Governor walks in

The suspense ended late on December 10 evening. Sanjay Malhotra, an Indian Administrative Service (IAS) officer belonging to the 1990 batch of Rajasthan cadre, was announced as the successor to Shaktikanta Das at Mint Road. The longest-serving Reserve Bank of India (RBI) governor since Benegal Rama Rau (July 1, 1949 to January 14, 1957), Das, after his six-year stint, was widely speculated to get an extension of at least two years. It was not to be.

In his first media interaction after taking charge, Malhotra hit the right notes.

Fostering economic growth, ensuring stability in policy making, and expanding financial inclusion would be among his key priorities. While significant progress has been made in financial inclusion, much more remains to be done, Malhotra said, stressing the importance of collaborating with all stakeholders in the financial system to further advance these efforts.

"Ours is still an economy that needs to develop as we enter 'Amrit Kaal' and to realise the vision of 'Viksit Bharat' by 2047. The huge responsibility we have in ensuring that the growth this country has, continues," the new RBI governor said.

Meanwhile, the financial markets are already pinning hopes on a 25 basis points cut in repo rate in February next year. The key rate was raised to 6.5 per cent in February 2023 and has held its perch. GDP growth in the July-September quarter fell to a seven-quarter low of 5.4 per cent. And the central bank, in its recently concluded monetary policy meeting, also lowered its projection for economic growth in financial year 2025 to 6.6 per cent from 7.2 per cent earlier.

Malhotra also displayed his lighter side. On his first day in the office, he said, "It won't be right for me to score on the first ball itself... It won't be appropriate for me to start the first day with bouncers, googly, and yorkers."