India’s government is likely to extend the term of central bank governor Shaktikanta Das for a second term, three sources with direct knowledge of the matter told Reuters, an unprecedented move that would make him the longest-serving chief since the 1960s.
Das was one of the most trusted bureaucrats in Prime Minister Narendra Modi’s administration before he was appointed to head the Reserve Bank of India in December 2018, at a time when relations between the government and the regulator were turbulent.
Das, whose current term is due to end on December 10, has already been RBI governor for more than the usual five-year maximum in recent decades and a further extension would make him the longest-serving after Benegal Rama Rau. Role for 7-1/2 years between 1949 and 1957.
Two government sources with direct knowledge of the matter said that as no other candidates are being considered at this time and no selection committee has been formed, Das’ tenure is likely to be extended for at least another year.
The decision will be announced after the completion of polling in Maharashtra state elections, said a third source with direct knowledge of the matter.
The country’s Election Commission prohibits the ruling party from making ad-hoc appointments that could influence voter behavior.
The finance ministry, the prime minister’s office and the central bank did not immediately respond to emailed requests for comment.
The three sources, who did not want to be identified due to the confidential nature of the matter, said the final decision would be taken by the prime minister.