pesowin RBI Gets A Tax Expert As Its New Governor
Sanjay Malhotra Appointed As 26th RBI Governor Photo: X/@nabilajamal_ Sanjay Malhotra Appointed As 26th RBI Governor Photo: X/@nabilajamal_ 
India’s central bank, the Reserve Bank of India (RBI) is all set to see an expert in taxation and finance head it. Sanjay Malhotra, a 1990-batch Indian Administrative Service (IAS) officerpesowin, has been appointed as the new Governor of RBI for three years by the Appointments Committee of the Cabinet. Currently serving as Revenue Secretary in the Ministry of Finance, Malhotra brings over 33 years of experience across key sectors, including finance, taxation, power, information technology, and mining.
Malhotra is the second consecutive career civil servant to helm the central bank, after predecessor Shaktikanta Das. Das served as the economic affairs secretary, revenue secretary and fertiliser secretary.
An engineering graduate in Computer Science from the Indian Institute of Technology (IIT) Kanpur, Malhotra also holds a master’s degree in Public Policy from Princeton University, US. During his earlier tenure as chairman and managing director of state-owned REC Ltd., he guided the company through significant growth periods.
A Master Of TaxationSince December 2022, as revenue secretary, Malhotra has played a key role in shaping tax policies for both direct and indirect taxes. Malhotra also held the position of ex-officio zecretary to the GST Council, the body responsible for overseeing the Goods and Services Tax (GST) system in India. In this capacity, he navigated the challenging task of balancing the fiscal priorities of various states while ensuring the integrity of the national tax framework. In addition to his work on taxes, Malhotra was responsible for managing the government’s non-tax revenue sources, including income from loan interest, dividends from public sector units (PSUs), and service fees.
Recently, Malhotra urged tax officials to prioritise the broader interests of the economy over strict revenue collection. This comes at a time when complaints about tax terrorism have been rising among both individuals and businesses, media reports showed. Speaking at the 67th annual day of the Directorate of Revenue Intelligence (DRI), Malhotra said: “If, in the process of collecting small amounts of revenue, we end up harming entire industries and the economy, that is certainly not the intent. Revenue can only be generated if there is income. We must be cautious and remember the old saying, ‘Do not kill the golden goose'.”
Managing Growth And Inflation A ChallengeIndustry experts highlighted that Malhotra is heading the central bank at a time when inflation and growth need management as the economy moves into a period of heightened volatility and global turmoil. Bank of America said Sanjay Malhotra will be taking charge of the RBI at a tricky period. "Malhotra faces the immediate challenge of dealing with a sharper-than-expected slowdown in growth coupled with the near-term volatility in inflation while also ensuring a stable currency," it noted.
Barclays Research, in a note, said: “We see [Sanjay Malhotra] continue the practical approach that has served the RBI MPC rather well in turbulent times instead of doing anything radical.”
A senior official who has worked with Malhotra said that Malhotra has the qualities to lead a team and will be key in driving India’s economic goals. “He (Malhotra) has been a team worker and will be a key element in driving India’s economic goalpesowin,” the official said.
