Shaktikanta Das Appointed Principal Secretary-2 to PM Modi

The government has appointed retired IAS officer and former Reserve Bank of India (RBI) Governor Shaktikanta Das as Principal Secretary-2 to Prime Minister Narendra Modi. Das is the first Principal Secretary to have extensive experience in both fiscal and monetary policy, making his appointment crucial at a time when the Indian economy faces challenges such as trade wars, rupee volatility, and economic slowdown. His tenure will be co-terminus with the term of the Prime Minister or until further orders.

Key Highlights of Shaktikanta Das’s Appointment

Appointment Details

• Appointed as Principal Secretary-2 to PM Modi.
• Tenure will align with the Prime Minister’s term or until further orders.

Professional Background

• Former RBI Governor (December 2018 – December 2024).

Served in the Ministry of Finance in multiple roles,

• Revenue Secretary
• Economic Affairs Secretary
• Fertilisers Secretary
• 1980-batch Tamil Nadu cadre IAS officer.
• Handled key policy matters in both fiscal and monetary domains.

Significance of His Appointment

Comes at a time when the Indian economy faces multiple challenges like,

• Trade wars sparked by US policies.
• Rupee volatility.
• Overall economic slowdown.
• His vast experience positions him to balance government’s growth objectives with inflation control.

Notable Achievements as RBI Governor

Managed financial stability amid crises like

• Collapse of IL&FS and its impact on NBFCs.
• Russia-Ukraine war and its effect on inflation.

Policy decisions during COVID-19

• Repo rate cut by 125 basis points.
• Loan moratorium and restructuring package.

Improved banking sector stability

• Reduced Gross Non-Performing Assets (GNPA) from 10.8% (2018) to 2.8% (2024).

Handled RBI-Government tensions on

• Transfer of surplus funds (Rs 1.76 lakh crore in 2019).
• Liquidity infusion and loan restructuring policies.

Experience in Major Economic Reforms

• Demonetization (2016): Led the re-monetization process.
• Budget Planning: Key official in the Budget division.
• 15th Finance Commission & G20 Sherpa (2017).