The government has named Rohit Jain as a deputy governor of the Reserve Bank of India, effective from May 3 for a three-year term. Jain, currently an executive director at the central bank, succeeds T. Rabi Sankar, who recently retired. His specific responsibilities as deputy governor are yet to be disclosed. This appointment comes as the central bank remains focused on managing currency and ensuring financial system stability.
RBI Governor Sanjay Malhotra, addressing the 25th FIMMDA‑PDAI Annual Conference in Amsterdam, highlighted India’s robust macroeconomic fundamentals driven by consumption and sustained public investment despite global macroeconomic challenges. He expressed concerns over potential strains on global fiscal sustainability due to increased fiscal spending and geopolitical tensions. Malhotra also warned about overvaluation risks in certain asset classes, particularly in the technology sector, which could pose broader market risks.
Malhotra praised the government’s emphasis on capital expenditure, noting its positive impact on private investment and capacity expansion. He acknowledged the impact of disrupted supply chains and rising energy prices on economic activity, cautioning that prolonged crises could lead to secondary inflationary pressures. The RBI Governor outlined plans to enhance financial markets, increase participation, and fortify institutional frameworks amid growing global uncertainties. He emphasized the need for further progress in India’s financial markets despite significant policy efforts that have already been made.
