Governor of the Reserve Bank of India
Governors Central Bank of India
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The inaugural officeholder was the Australian banker Sir Osborne Smith, while Sir C. D. Deshmukh was the first native Indian governor. Sir Benegal Rama Rau was the longest-serving governor, Holding office for over seven years. while Amitav Ghosh's 20-day term is the shortest. The bank's fifteenth governor, Manmohan Singh, later became India's thirteenth prime minister. Sanjay Malhotra is the twenty-sixth governor of the Reserve Bank of India from 11 December 2024.
Appointment process
The RBI Governor is appointed by the Government of India (GoI) under the provisions of the Reserve Bank of India Act, 1934. The appointment is made by the Appointments Committee of the Cabinet (ACC), headed by the Prime Minister and the Home Minister. Typically, the Governor is appointed for a term of up to five years, which may be extended or renewed for a second term. Usually the Government appoint any IAS officer or an Economist as the Governor. Till now, M. Narasimham was the only RBI officer who got empanelled to the rank of Governor.
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Duties and responsibilities of the governor
The RBI Governor is the chief executive authority of the Reserve Bank of India and is responsible for formulating and implementing monetary policy of India. The Governor chairs the Monetary Policy Committee, which determines key interest rates to maintain price stability while supporting economic growth.
The Governor oversees regulation and supervision of the banking and financial system in India. This includes ensuring financial stability, issuing guidelines for banks and non-banking financial companies, and taking corrective actions when required.
The RBI Governor also manages India’s foreign exchange reserves and formulates policies under the Foreign Exchange Management Act, 1999. This involves maintaining exchange rate stability and ensuring orderly development of the foreign exchange market.
Additionally, the Governor acts as the principal advisor to the National Security Advisor and the Government of India on national security, economic and financial matters. The office also handles currency issuance, payment and settlement systems, and promotes safe and efficient financial infrastructure in the country.
Emolument, accommodation and perquisites
The rank of the RBI Governor is equivalent to the Cabinet Secretary as per pay-level. The post is accompanied by:
- Official residence at Malabar Hill, Mumbai, Maharashtra, a Type-VIII bungalow.
- Security cover as per central government rules.
- Eligibility for a diplomatic or official passport for foreign travel.
- Salary as per Pay Level 18 of the 7th Pay Commission. The Governor is entitled to receive the Dearness allowance (DA), Travel Allowance (TA) and other allowances which are determined by the GoI.
List of governors
In popular culture
- In the film Governor (film), the RBI Governor was portrayed by Manoj Bajpayee, inspired by S. Venkitaramanan, the 18th Governor of the RBI.