"The reappointment of Governor Shaktikanta Das for a three- year term signals continuity of monetary policy and gives greater stability to government-RBI relations," said Barclays in a note. If he serves the full six-year term as governor, Das would become the longest-serving RBI governor in almost seven decades.
The government has extended the term of Reserve Bank of India Governor by another three years up to December 2024, according to an official order.
Das was appointed the RBI's 25th governor on December 11, 2018 for a period of three years after the abrupt resignation of his predecessor Urjit Patel.
An official order dated October 28, said that the government has reappointed Das as the Governor of the central bank for a period of three years beyond December 10, 2021.
The decision was taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi.
"The Appointments Committee of the Cabinet has approved the reappointment of Shri Shaktikanta Das IAS Retd (TN:80) as Governor, Reserve Bank of India for a period of three years beyond 10.12.2021 or until further orders, whichever is earlier," the order said.
With the extension, the former IAS officer of Tamil Nadu cadre will head the RBI till December, 2024.
He is the first RBI Governor to get extension after the BJP-led government came to power in 2014. Raghuram Rajan was denied extension in 2016, while Urjit Patel quit before completion of his three-year term.
Das, 1980 batch officer, played an important role in steering the economy during the COVID-19 period. Under his leadership, RBI announced more than 100 measures to maintain financial stability and push growth during the unprecedented crisis.
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