Mumbai: Sanjay Malhotra assumed office as the 26th Governor of the Reserve Bank of India (RBI) on Wednesday, stepping into a pivotal role at a critical time for India's economy.  

Malhotra, a seasoned bureaucrat and former Revenue Secretary, was welcomed by senior RBI officials at the central bank's headquarters in Mumbai. His appointment was officially confirmed through the RBI's post on the social media platform X, accompanied by photographs of the event.  

Sanjay Malhotra, an IAS officer of the Rajasthan cadre, succeeds Shaktikanta Das, under whom the RBI navigated through a challenging period marked by high inflation and slowing economic growth. During his tenure, Das focused on maintaining policy stability to address inflationary pressures, holding key rates steady for 11 consecutive monetary policy meetings.  

In his initial actions, Malhotra signed documents to formally take charge of the central bank. Deputy Governors Swaminathan J, M Rajeshwar Rao, and T Rabi Sankar were present to witness the transition of leadership.  

Challenges ahead  

The new RBI Governor takes charge at a time when the Indian economy faces significant challenges. GDP growth slowed to a seven-quarter low of 5.4 percent in the September quarter, and inflation remains above the 6 percent threshold set for the central bank by the government.  

Analysts anticipate that Malhotra's leadership could bring changes to monetary policy. Speculations are rife about a possible interest rate cut in the RBI's upcoming policy review in February, which many believe would help stimulate economic growth.  

Focus on growth and inflation  

Balancing growth and inflation is expected to be Malhotra's top priority. His predecessor Shaktikanta Das recently highlighted the "unsettled" state of this balance as a key concern for the central bank.  

Malhotra is scheduled to address the media later in the day, where he is likely to outline his vision and priorities for the RBI, offering insights into his approach to navigating these economic challenges.  

PTI