The government has given Shaktikanta Das three more years to remain as the Reserve Bank of India (RBI) Governor, till December 2024. 

"The reappointment of Governor Shaktikanta Das for a three- year term signals continuity of monetary policy and gives greater stability to government-RBI relations," said Barclays in a note. If he serves the full six-year term, he would become the longest-serving RBI Governor in almost seven decades.

Das is the first RBI Governor to get an extension under the current BJP government. The earlier two Governors had either resigned or decided to go back to academics.

The decision of his reappointment was taken last evening by the cabinet appointments committee comprising Prime Minister Narendra Modi and Home Minister Amit Shah.

"The Appointments Committee of the Cabinet has approved the reappointment of Shaktikanta Das as Reserve Bank of India Governor for a period of three years beyond 10.12.2021 or until further orders, whichever is earlier," an official statement stated.

Das, who took charge as RBI Governor on December 11, 2018, for a period of three years, was previously in the department of economic affairs secretary at the finance ministry.

A postgraduate from St. Stephen’s College, Delhi University, Das has held important positions in finance, taxation, industries and infrastructure. He has also served as India's Alternate Governor in the World Bank, Asian Development Bank (ADB), New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB)

"The three-year reappointment is slightly longer than the usual two-year extension that has been the norm recently. Under Governor Das, the central bank has done the heavy lifting to support the economy through the COVID crisis, with fiscal policy playing a supportive role. We also view the governor’s reappointment as a vote of confidence in the RBI’s policy stance," Barclays added.

During his long tenure in the Ministry of Finance, Das was directly associated with the preparation of as many as eight Union Budgets.