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

Summary/Static	Details
Why in the news?	RBI’s T Rabi Sankar Joins 16th Finance Commission as Part-Time Member
Appointee	T Rabi Sankar
New Role	Part-time member, 16th Finance Commission
Head of Commission	Arvind Panagariya
Term Ends	On report submission or by October 31, 2025
Replaces	Ajay Narayan Jha
Background	Deputy Governor, RBI; ex-IMF consultant
Commission Tenure	Applicability April 1, 2026 – March 31, 2031
RBI Responsibilities	Financial markets, fintech, CBDC, foreign exchange