RBI deputy governor shake-up: Poonam Gupta to lead monetary policy, Rabi Sankar gets 12 departments

In parallel developments, an RBI-appointed working group has recommended retaining the current trading hours for India’s foreign exchange markets, while proposing an extension of call money market hours to 7 PM, up from the existing 5 PM

The Reserve Bank of India (RBI) has reassigned portfolios among its four deputy governors following the appointment of Poonam Gupta, who now takes charge of the crucial Monetary Policy Department.

The central bank’s announcement marks a significant internal reshuffle triggered by Gupta’s induction into the top management team. Apart from overseeing monetary policy, Gupta will lead seven additional departments, including Corporate Strategy and Budget, Communication, and Financial Stability — placing her at the centre of key strategic and economic functions.

Gupta brings a wealth of experience to the role. Prior to her appointment, she was Director General at the National Council of Applied Economic Research (NCAER). Her career includes nearly two decades at the International Monetary Fund and the World Bank. She has also served on the Prime Minister’s Economic Advisory Council and chaired the advisory group to the 16th Finance Commission. Academically, she holds a PhD and Master’s in Economics from the University of Maryland, USA, along with a Master’s degree from Delhi School of Economics.

Deputy governors get new roles

With Gupta stepping into the monetary policy role, her colleague M. Rajeshwar Rao has now been assigned six departments, including Regulation, Enforcement, Risk Monitoring, and Coordination. Rao had temporarily overseen the Monetary Policy Department after the retirement of Deputy Governor Michael Debabrata Patra in January.

T. Rabi Sankar, another deputy governor, retains oversight of 12 departments, including Information Technology, Fintech, Payment and Settlement Systems, and the Foreign Exchange Department. Swaminathan Janakiraman has been assigned Consumer Education, Supervision, Inspection, and several other departments.

Forex trading hours unchanged

In parallel developments, an RBI-appointed working group has recommended retaining the current trading hours for India’s foreign exchange markets. It also proposed extending the trading hours for the call money market to 7 PM from the existing 5 PM.

The panel noted that forex markets, primarily used for hedging, already operate in an effective 24x5 model, with core hours from 9 AM to 3:30 PM and after-hours trading allowed. The group also advised maintaining the single daily guaranteed settlement of OTC forex trades through CCIL.

These changes signal continued efforts to streamline both internal governance and market operations within India’s central banking framework.