The government has announced the appointment of Sanjay Malhotra, currently serving as Revenue Secretary, as the new Governor of the Reserve Bank of India (RBI). He will assume his duties on Wednesday for a tenure of three years.
An IAS officer of the 1990 batch from the Rajasthan cadre, Mr. Malhotra has an impressive academic background, holding a degree in Computer Science from the Indian Institute of Technology (IIT) Kanpur and a Master’s in Public Policy from Princeton University, USA.
With over 33 years of experience, Mr. Malhotra has worked across diverse sectors, including power, finance, taxation, information technology, and mining. Prior to his role as Revenue Secretary, he served as Secretary in the Department of Financial Services.
His extensive expertise in finance and taxation, both at the state and central levels, is highlighted in the profile on the Department of Revenue’s official website.
What Is The Salary Of New RBI Governor Sanjay Malhotra?
The position of the Governor of the Reserve Bank of India (RBI) is one of the most prestigious and significant roles in the country. The RBI acts as the banker to the government, holding the sole authority to print currency and provide loans to the Government of India when needed. Additionally, it maintains cash reserves and ensures monetary stability across the nation.
The Governor’s role involves critical responsibilities, such as issuing or canceling banking licenses and imposing fines for regulatory violations. Currently, Mr. Shaktikanta Das serves as the 25th Governor of the RBI. This article provides insights into the salary, responsibilities, and qualifications required to attain this esteemed position.
RBI Governor Salary: Structure and Allowances
The Governor of the RBI is well-compensated for the numerous duties and responsibilities associated with this role. The salary is governed by the norms of the 7th Pay Commission and is supplemented with various allowances.
Monthly Salary and Allowances
Basic Monthly Salary: ₹2,50,000
Allowances: ₹1,60,000, including:
Dearness Allowance
Grade Allowance
Education Allowance
Medical Expenses
Fuel Expenses
The Deputy Governors of the RBI, who assist the Governor, earn ₹2,25,000 per month and receive similar allowances.
Qualifications and Experience Required
Becoming the Governor of the RBI requires extensive experience in the financial sector and expertise in banking operations. Candidates must meet the following criteria:
Educational Qualifications
Postgraduate degree or Chartered Accountancy (CA).
Professional Experience
Served as General Manager, Executive Director, or Chairman of a bank.
Worked in the Finance Department of the Government of India.
Held positions at global institutions like the IMF or World Bank.
Possessed substantial experience in reputed financial organizations.
Key Skills
Strong communication and interpersonal skills.
Leadership abilities.
Deep understanding of economic policies.
Sound decision-making capabilities, particularly in critical matters like issuing or canceling banking licenses.
Responsibilities of the RBI Governor
As the head of India’s central bank, the Governor has a range of critical duties, including policy formulation in collaboration with the Finance Ministry. Below are some of the key responsibilities:
1. Banker’s Bank
The RBI serves as a banker to other banks by:
Lending funds to banks.
Maintaining cash reserves accessible during emergencies.
Fulfilling cash and borrowing needs.
Assisting struggling banks with financial aid.
The Governor oversees these activities and ensures they are executed effectively.
2. Government’s Banker
As the government’s banker, the RBI manages:
Records of government transactions.
Deposits of government funds.
Loans to the government.
Regulation of government securities.
The Governor approves loans and ensures efficient management of government finances.
3. Custodian of Currency
The RBI holds the exclusive authority to print currency and manage foreign exchange. The Governor’s signature on currency notes underscores the responsibility and authority of the position.
Post-Retirement Benefits for RBI Governors
Retiring from the position of RBI Governor comes with several lucrative benefits:
Monthly pension of ₹1,00,000.
Reimbursement of medical and holiday expenses.
Free travel privileges.
The role of the RBI Governor is both prestigious and demanding, requiring extensive knowledge, experience, and dedication. The position comes with a lucrative salary, allowances, and post-retirement benefits, reflecting the responsibilities involved.
With perseverance and a focus on building expertise in the financial sector, aspiring candidates can work towards achieving this highly esteemed position. For more updates and guidance on competitive exams, aspirants can explore dedicated resources like the Testbook App to enhance their preparation.
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