The government on Monday appointed Sanjay Malhotra as the new Governor of the Reserve Bank of India (RBI), fizzing out rumours on extension of term for incumbent governor Shaktikanta Das.

Malhotra, a seasoned bureaucrat, will be the 26th governor of the apex bank, succeeding Das, whose term is set to end Tuesday.

Das, who was appointed as the RBI Governor in December 2018, has already surpassed the typical five-year tenure that has been standard in recent decades.

Malhotra, a 1990 Batch Rajasthan Cadre IAS Officer, will assume office n December 11, 2024 for a period of three years, the appointment committee of the cabinet said in a notification. His appointment comes at a critical juncture as the RBI battles challenges like inflation control and slowing down of economic growth.

Malhotra is currently serving as Secretary (Revenue) in the Ministry of Finance. Previously, he held the position of Secretary in the Department of Financial Services.