RBI's T Rabi Sankar joins 16th Finance Commission as part-time member
New Delhi, Jun 7, 2025
President of India has appointed T Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), as a part-time member of the 16th Finance Commission (XVIFC). He will serve in this role from the date he assumes office until either the commission submits its report or until October 31, 2025, whichever comes first.
T Rabi Sankar’s appointment comes after Ajay Narayan Jha, one of the full-time members of the commission, stepped down due to personal reasons, according to a statement from the Ministry of Finance.
The 16th Finance Commission was formed on December 31, 2023. It is headed by Arvind Panagariya, the former Vice-Chairman of NITI Aayog. The commission is expected to present its recommendations by October 31, 2025, which will apply for a five-year period beginning April 1, 2026.
The Finance Commission is a constitutional body to provide suggestions on centre-state financial relations. The erstwhile 15th Finance Commission under NK Singh had recommended that states be given 41 per cent of the divisible tax pool of the Centre during the five-year period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission under YV Reddy.
Recent re-appointment as RBI Deputy Governor
In April, the central government re-appointed T Rabi Sankar as the Deputy Governor of the Reserve Bank of India (RBI) for a second extension, effective from May 3. He was first appointed in May 2021 for a three-year term and received a one-year extension in May 2024.
Shankar currently heads 13 departments at the RBI. In January this year, he was given additional charge of financial market regulations and the fintech department. He also oversees the departments of currency management, external investment and operations, and foreign exchange. He has played a key role in developing the Central Bank Digital Currency (CBDC).
Since joining the RBI in 1990, Shankar has held several senior positions, including Executive Director in charge of payments, IT, and risk management.
From 2005 to 2011, he worked as a consultant with the International Monetary Fund (IMF), focusing on government bond markets and debt management. He also served as Chairman of Indian Financial Technology and Allied Services (IFTAS).
An alumnus of Jawaharlal Nehru University, T Rabi Sankar holds an M.Phil in Economics.
[The Business Standard]
