Sanjay Malhotra, a career civil servant, has become India’s new central bank governor at a time when the country’s economic growth is slowing and inflation is surging.

Sanjay Malhotra, former revenue secretary, took charge as the 26th RBI governor on Wednesday. He assumes control amidst slowing economic growth and persistent inflation, raising expectations of interest rate cuts in the upcoming policy review.

RBI Governor Shaktikanta highlights the potential of CBDC in shaping India's economic future, the progress of the digital rupee pilot project

As Shaktikanta Das finishes up his tenure as India’s central bank governor, handing over the reins to a career bureaucrat, many have praised his performance as a relative outsider who leaned on diplomacy to propel the world’s fastest-growing major economy to new heights.

The Reserve Bank of India has held interest rate steady since February last year, while a sharper-than-anticipated slowdown in India’s growth has made RBI’s task tougher.

The new governor of the Reserve Bank of India brings a pro-growth sensibility to the position that raises the likelihood of lower benchmark policy rates early next year.

India appointed career civil servant Sanjay Malhotra as its new central bank governor on Monday in a surprise move that leaves markets guessing about the future direction of monetary policy, as growth slows and high inflation persists.