RBI’s T Rabi Sankar Joins 16th Finance Commission as Part-Time Member

In a significant administrative development, the 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. His appointment fills the vacancy left by Ajay Narayan Jha, who stepped down due to personal reasons. Sankar’s tenure will continue until the submission of the commission’s report or until October 31, 2025, whichever is earlier.

Why in News?

T Rabi Sankar’s inclusion in the 16th Finance Commission comes at a critical juncture as the Commission prepares its fiscal recommendations for the 2026-2031 period. His expertise in financial markets and central banking is expected to significantly influence the Centre-State financial relationship framework.

Key Highlights

• Appointee: T Rabi Sankar, RBI Deputy Governor
• Role: Part-time member of the 16th Finance Commission (XVIFC)
• Tenure: Until the commission submits its report or October 31, 2025
• Replaces: Ajay Narayan Jha, who resigned due to personal reasons

Background on the Finance Commission

• Constitutional Body: Formed under Article 280 of the Constitution of India
• Mandate: To recommend how revenues should be shared between the Centre and States
• 16th Finance Commission Head: Arvind Panagariya, former Vice-Chairman of NITI Aayog
• Date of Constitution: December 31, 2023
• Report Submission Deadline: October 31, 2025
• Applicable Period: April 1, 2026 – March 31, 2031

T Rabi Sankar – Profile Overview

• Current Role: Deputy Governor, Reserve Bank of India (Reappointed in May 2024)
• Initial Appointment: May 2021

Responsibilities at RBI

Heads 13 departments, including,

• Financial Market Regulation
• Fintech
• Currency Management
• Foreign Exchange
• External Investment and Operations
• Oversaw development of Central Bank Digital Currency (CBDC)

Past Roles

• Executive Director, RBI (Payments, IT, Risk Management)
• Consultant to IMF (2005-2011) on debt markets and bond management
• Chairman, Indian Financial Technology and Allied Services (IFTAS)

Education

• Alumnus of Jawaharlal Nehru University (JNU)
• Holds M.Phil in Economics

Significance

• Strengthens the technical expertise within the Finance Commission
• Enhances dialogue on fiscal federalism
• Balances monetary insight with public finance goals
• Likely to contribute significantly to tax devolution discussions and Centre-State fiscal policies