Sanjay Malhotra to succeed Shaktikanta Das as next RBI governor

While the growth in gross domestic product (GDP) plunged to a seven-quarter low of 5.4% in the second quarter of the current fiscal and demand looked weak, the RBI maintained its "neutral" stance.

It said "credible evidence" was needed on the outlook for inflation, which it seeks to align with the 4% target on a durable basis.

Malhotra, 56, took over as revenue secretary in December 2022. Prior to that, he served as secretary in the department of financial services. As revenue secretary, he has overseen three Budget exercises - 2023-24, and the interim and full Budget for 2024-25.

In his tenure, the finance ministry undertook a major overhaul of the capital gains tax structure, lowered personal income tax (PIT) rates with a new exemption-less regime and abolished the controversial angel tax, which had hit the startup ecosystem. He has extensive experience in finance and taxation at the state as well as the Central government.

Malhotra is an engineering graduate from Indian Institute of Technology (IIT), Kanpur and has a Master's in Public Policy from Princeton University, USA.

Economists said establishing a "right balance" between growth and inflation will be the biggest challenge that the new governor will be facing.