Former RBI Governor Shaktikanta Das Joins Prime Minister’s Office as Principal Secretary, Bringing Years of Financial Expertise
Shaktikanta Das Appointed as PM Modi’s Principal Secretary: Former RBI Governor Joins PMO Within 75 Days of Retirement
Former Reserve Bank of India (RBI) Governor Shaktikanta Das has been appointed as Principal Secretary-2 to Prime Minister Narendra Modi. His tenure will align with the Prime Minister’s term. Das, who served as RBI Governor for six years, retired on December 10, 2024. Now, just 75 days later, he has been inducted into the PMO. He will work alongside Dr. P.K. Mishra, Principal Secretary-1.
A Distinguished Bureaucratic Career
Shaktikanta Das is a 1980-batch IAS officer from the Tamil Nadu cadre. He previously served as Secretary of Economic Affairs until May 2017. Throughout his career, he has held several key positions, including a member of the 15th Finance Commission. He has also represented India in global financial institutions such as BRICS, the International Monetary Fund (IMF), and SAARC.
Das played a crucial role during India’s demonetization in November 2016 and was actively involved in shaping economic policies.
Shaktikanta Das as RBI Governor: A 6-Year Legacy
Das was appointed as RBI Governor in December 2018 and led India’s central bank for six years. His tenure ended on December 10, 2024, after a three-year extension. His successor at the RBI is Sanjay Malhotra.
Key Milestones in His Tenure
1. Twice Named the World’s Best Central Banker
In both 2023 and 2024, Global Finance honored Shaktikanta Das with an A+ rating in its Central Banker Report Card. He was recognized for his effective management of inflation, interest rates, and economic growth, ensuring India’s financial stability.
2. Navigating India Through Economic Crises
Under Das’s leadership, the RBI successfully managed economic challenges during the COVID-19 pandemic, Russia-Ukraine war, and Israel-Hamas conflict. His policy decisions helped maintain liquidity and financial stability during volatile global conditions.
3. Preventing the Collapse of Major Banks
Das played a key role in rescuing Yes Bank and Lakshmi Vilas Bank, which faced severe financial crises. He also managed the IL&FS debacle, which had heavily impacted non-banking financial companies (NBFCs).
4. Adjusting Interest Rates for Economic Growth
When Das took over in 2018, the repo rate was 6.50%. To boost economic growth, he lowered it to 4%. However, as inflationary pressures rose, the rate was later hiked back to 6.50%.
5. Strengthening India’s Banking Sector
During Das’s tenure, India’s non-performing assets (NPAs) declined significantly, from 10.38% in 2018 to 2.59% by 2024. Additionally, Indian banks saw a massive increase in profits, recording ₹2.63 lakh crore in FY 2023, compared to ₹32,400 crore in losses in FY 2018.
A Veteran Bureaucrat with Global Recognition
Shaktikanta Das, a seasoned administrator, has held various high-profile positions in the Indian government. He has represented India at global platforms such as IMF, BRICS, and SAARC. A postgraduate from St. Stephen’s College, Delhi, Das has played a pivotal role in shaping India’s economic landscape.
