▫️ The Central government has appointed Sanjay Malhotra as the 26th Governor of the Reserve Bank of India (RBI).
UPSC in the past has asked about this institution in both Prelims and Mains.
Let's discuss:
‣ Process of appointment
‣ Tenure
‣ Qualifications
Solve the PYQ on this topic in the end.
🧵
UPSC in the past has asked about this institution in both Prelims and Mains.
Let's discuss:
‣ Process of appointment
‣ Tenure
‣ Qualifications
Solve the PYQ on this topic in the end.
🧵
▪️ Process of Appointment:
⌲ The RBI Governor is appointed under the provisions of the RBI Act of 1934, which mandates that the chief is chosen by the central government.
‣ The Financial Sector Regulatory Appointment Search Committee is responsible for preparing a list of eligible candidates for the position.
This committee consists of:
✓ Cabinet Secretary
✓ Current RBI Governor
✓ Financial Services Secretary
⌲ The RBI Governor is appointed under the provisions of the RBI Act of 1934, which mandates that the chief is chosen by the central government.
‣ The Financial Sector Regulatory Appointment Search Committee is responsible for preparing a list of eligible candidates for the position.
This committee consists of:
✓ Cabinet Secretary
✓ Current RBI Governor
✓ Financial Services Secretary
‣ After evaluating the candidates, the committee conducts interviews and forwards the shortlisted list to the Cabinet Committee on Appointments.
This committee, chaired by the Prime Minister, gives the final approval for the appointment.
This committee, chaired by the Prime Minister, gives the final approval for the appointment.
▪️ Tenure:
⌲ The appointed RBI governor serves a term of up to five years.
‣ The exact duration is determined by the government at the time of appointment.
‣ The governor is eligible for reappointment or an extension of their term.
⌲ The appointed RBI governor serves a term of up to five years.
‣ The exact duration is determined by the government at the time of appointment.
‣ The governor is eligible for reappointment or an extension of their term.
▪️ Qualifications:
‣ The RBI Act of 1934 does not specify any particular qualifications for the RBI governor.
‣ Historically, individuals with a wide range of educational backgrounds have been appointed to head the central bank.
‣ The RBI Act of 1934 does not specify any particular qualifications for the RBI governor.
‣ Historically, individuals with a wide range of educational backgrounds have been appointed to head the central bank.
▪️ Functions:
The position of RBI Governor is among the most prestigious roles in India’s financial system.
The Governor is responsible for overseeing the country’s monetary policy, regulating banking institutions, and maintaining financial stability. x.com
The position of RBI Governor is among the most prestigious roles in India’s financial system.
The Governor is responsible for overseeing the country’s monetary policy, regulating banking institutions, and maintaining financial stability. x.com
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