Who is RBI Governor-designate Sanjay Malhotra?

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  • IAS officer of 1990 batch of Rajasthan cadre
  • Computer Science engineer from IIT-Kanpur
  • Holds a Master’s in Public Policy from Princeton University, USA
  • Before his stint in the Department of Revenue, he was a Secretary in the Department of Financial Services.

Hailing from Rajasthan, Sanjay Malhotra, 56, is known for his consensus-building approach and pivotal role in implementing the new income tax regime, has been appointed as the new Governor of the Reserve Bank of India (RBI).

Currently serving as the Revenue Secretary in the Ministry of Finance, Malhotra will succeed Shaktikanta Das, whose second three-year term concludes on December 10.

Malhotra will assume the role of RBI Governor for a three-year term starting December 11.

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During his tenure as Secretary in the Department of Financial Services (DFS), Malhotra played a crucial role in overseeing the financial sector, particularly public sector banks and the insurance industry. One of his most notable achievements was the successful launch of the Initial Public Offering of Life Insurance Corporation, which was hailed as India’s largest IPO, raising over ₹21,000 crore for the central government.

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Colleagues describe Malhotra as a “pro-reformist” who blends his technical expertise in computer engineering from the prestigious Indian Institute of Technology (IIT), Kanpur, with a deep understanding of global financial markets and modern international financial architecture. He also holds a Master’s degree in Public Policy from Princeton University, further enhancing his comprehensive approach to financial sector reforms.

Sanjay Malhotra is known to enjoy a good relationship with the finance minister, which has facilitated better coordination between monetary and fiscal policies. One of the standout achievements of his tenure in the ministry is the successful implementation of the new income tax regime

Sanjay Malhotra’s journey to RBI Governorship

Sanjay Malhotra, a computer science engineer from IIT Kanpur and a Master’s in Public Policy from Princeton University, USA, has had a distinguished career in public service. He began his central government journey in 2000 as the Private Secretary to a Union Minister after serving in various departments in his home state.

In 2003, Malhotra returned to Rajasthan, where he worked in the departments of mines and minerals, information and broadcasting, finance, energy, and commercial taxation. He rejoined the central government in 2020 as Additional Secretary in the Union Ministry of Power.

Malhotra also served as the Chairman and Managing Director of Rural Electrification Corporation (REC) for over a year before being appointed Secretary of Financial Services in the Union Finance Ministry in February 2022. During this time, he was also a member of the RBI board, representing the financial services department.

In December 2022, he was appointed Revenue Secretary, where he successfully implemented the new income tax regime, a highlight of his tenure overseeing both direct and indirect taxation.

Key taxation reforms under Malhotra’s tenure

During Malhotra’s tenure, significant strides were made in both direct and indirect taxation. On the direct taxation front, the new regime provided relief to the salaried class and initiated the simplification of the Income Tax Act. In the realm of indirect taxation, his term brought clarity to the taxation of online gaming under GST and saw the removal of the windfall tax on domestically produced crude oil and fuel exports, among other reforms