The governor of the Reserve Bank of India is the chief executive officer of India's central bank and the ex-officio chair of its Central Board of Directors. The Governor of RBI by convention to be considered as equivalent to the Cabinet Secretary of India, as per Level 18 in the Pay Scale. The Indian Rupee currency notes, issued by the Reserve Bank of India, bear the governor's signature. Since its establishment in 1935, the RBI has been headed by twenty-sixgovernors. The governor is a member of the Strategic Policy Group headed by National Security Advisor Ajit Doval. It is a crucial wing of the National Security Council Secretariat.

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 fifteenthgovernor, 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.

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.

+RBI Governor monthly pay and allowancesBase Salary as per 7th Pay Commission (Per month)Pay Matrix LevelSourcesPay Level 18

List of governors

#Portrait Name Term Length of tenure Notes Ref1 Osborne Smith1 April 1935—30 June 1937Smith was an Australian banker who served as the managing governor of the Imperial Bank of India before becoming the governor. He resigned the governorship before the completion of the term.2 James Braid Taylor1 July 1937—17 February 1943Taylor was an ICS officer who served as the controller of the currency and the deputy governor of the RBI. He died while in office.3 C. D. Deshmukh11 August 1943—30 June 1949Deshmukh was an ICS officer who served as the deputy governor of the RBI. He was the first Indian to serve as the governor. His governorship oversaw the partition of India as the subsequent division of assets and liabilities between India and Pakistan.4 Benegal Rama Rau1 July 1949—14 January 1957Rau was an ICS officer who served as the ambassador to the United States. He resigned the governorship before the completion of his second extended term.5 K. G. Ambegaonkar14 January 1957—28 February 1957Ambegaokar was an ICS officer who served as the Finance Secretary before becoming the deputy governor of RBI. He was appointed as the interim governor upon the resignation of Benegal Rama Rau.6 H. V. R. Iengar1 March 1957—28 February 1962Iyengar was an ICS officer who served as the chairman of the State Bank of India. Indian coinage was shifted to decimal coinage during his governorship.7 P. C. Bhattacharya1 March 1962—30 June 1967Bhattacharya was an Indian Audit and Accounts Service officer who served as the chairman of the State Bank of India before becoming the governor.8 Lakshmi Kant Jha1 July 1967—3 May 1970Jha was an ICS officer who served as the secretary to the prime minister before becoming the governor. He left the office upon his appointment as the ambassador to the United States.9 B. N. Adarkar4 May 1970—15 June 1970Adarkar was an economist who served as the economic advisor to the government before becoming the deputy governor of RBI. He was appointed as the interim governor.10 S. Jagannathan16 June 1970—19 May 1975Jagannathan was an ICS officer who served as India's Executive Director of the World Bank before becoming the governor. He resigned the office to become the India's Executive Director of the International Monetary Fund.11 N. C. Sen Gupta19 May 1975—19 August 1975Gupta served as the Secretary to the Department of Banking before becoming the interim governor.12 K. R. Puri20 August 1975—2 May 1977Puri served as the chairman of the Life Insurance Corporation before becoming the governor. His governorship oversaw the formation of various regional rural banks.13 M. Narasimham3 May 1977—30 November 1977Narasimham was a RBI research officer who served as an Additional Secretary to the Department of Economic Affairs before becoming the governor. He is the only RBI Grade B officer who reached upto the rank of Governor.14 I. G. Patel1 December 1977—15 September 1982Patel was an economist who served as a Secretary in the Ministry of Finance before becoming the governor. His governorship oversaw the demonetization of ₹5,000 and ₹10,000 value currency.15 Manmohan Singh16 September 1982—14 January 1985Singh was an economist who served as the Finance Secretary before becoming the governor. His governorship oversaw various legal reforms related to the banking sector.16 Amitav Ghosh15 January 1985—4 February 1985Ghosh was the deputy governor of RBI who was appointed as the interim governor until R. N. Malhotra assumed the office.17 R. N. Malhotra4 February 1985—22 December 1990Malhotra was an Indian Administrative Services officer who served as Executive Director of the IMF before becoming the governor. His governorship oversaw the inauguration of Indira Gandhi Institute of Development Research.18 S. Venkitaramanan22 December 1990—21 December 1992Venkitaramanan was an IAS officer who served as the Finance Secretary before becoming the governor. India adopted IMF's stabilization program during his governorship.19 C. Rangarajan22 December 1992—21 November 1997Rangarajan is an economist who served as the deputy governor of RBI before becoming the governor. His governorship oversaw the establishment of unified exchange rate.20 Bimal Jalan22 November 1997—6 September 2003Jalan is an economist who served at various positions including being the chief economic adviser to the government and serving as the Finance Secretary before becoming the governor. His governorship oversaw less inflation and interest rates.21 Y. V. Reddy6 September 2003—5 September 2008Reddy is an IAS officer who served as the deputy governor of RBI before becoming the governor. During his governorship, he contributed in the financial sector reforms and external commercial borrowings.22 D. Subbarao5 September 2008—4 September 2013Subbarao is an IAS officer who served as the Finance Secretary before becoming the governor. He wrote on various issues including decentralization and public finance.23 Raghuram Rajan4 September 2013—4 September 2016Rajan is an economist who served as the chief economic advisor to the government and the chief economist of IMF before becoming the governor.24 Urjit Patel4 September 2016—10 December 2018Patel is an economist who worked with the IMF and the central government. He served as the deputy governor of RBI before becoming the governor. His governorship oversaw the demonetization of ₹500 and ₹1000 banknotes. He later resigned citing personal reasons.25 Shaktikanta Das12 December 2018—11 December 2024Das was an IAS officer who served as the Revenue Secretary and later Economic Affairs Secretary. He served as a Member of the 15th Finance Commission before becoming the governor. 26 Sanjay Malhotra11 December 2024—IncumbentMalhotra is an IAS officer who served as the Financial Services Secretary and later Revenue Secretary before becoming the governor.

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.

See also Finance Secretary of India Deputy Governor of the Reserve Bank of India

References

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