The Centre has reconstituted the Reserve Bank of India’s Central Board, reappointing industrialist Anand Mahindra and inducting former ISRO chairman S Somanath among a new set of part-time, non-official directors. The reshuffle also brings Janmejaya Kumar Sinha, former diplomat Syed Akbaruddin and former government official Annie George Mathew onto the central bank’s board. The changes come as the government refreshes the non-official representation on the RBI’s highest decision-making body.
Mahindra gets fresh term
Mahindra Group chairman Anand Mahindra, who first joined the RBI Central Board in June 2022, has been given another four-year term as a part-time, non-official director. Mahindra was among four non-official directors appointed in 2022 alongside Venu Srinivasan, Pankaj Ramanbhai Patel and Ravindra H Dholakia. The latest reconstitution retains Mahindra while the other members of that group move out of the board.
The continuation of Mahindra provides an element of continuity as the government brings in several new faces with experience across different sectors.
Somanath joins board
Former Indian Space Research Organisation chairman S Somanath has been appointed a part-time, non-official director for four years. His induction brings a prominent science and technology voice to the central bank’s governing board.
Somanath led ISRO during a significant phase of India’s space programme and was at the helm when the Chandrayaan-3 mission achieved a successful soft landing near the Moon’s south polar region in 2023.
The government has also appointed Sinha, Akbaruddin and Mathew as part-time, non-official directors for four-year terms, or until further orders, whichever is earlier.
Akbaruddin is a former Indian Foreign Service officer who served as India’s permanent representative to the United Nations, while the other appointments broaden the range of professional and administrative experience represented on the board.
Board strength reduced
The latest changes have also altered the overall composition of the RBI Central Board, with its strength coming down from 15 to 14 members.
The Central Board oversees the affairs of the RBI and plays an important role in the central bank’s broader governance framework. Its membership includes the RBI Governor and Deputy Governors as well as government-nominated directors drawn from different fields.
The latest rejig gives the board a fresh mix of expertise spanning business, technology, diplomacy and administration at a time when the central bank is navigating challenges ranging from inflation and growth to rapid changes in digital finance and the global economy.