Shirish Chandra Murmu Takes Charge as RBI Deputy Governor

— by vishal Sambyal

Shirish Chandra Murmu assumes charge as the new Deputy Governor of the Reserve Bank of India, succeeding M. Rajeshwar Rao. His appointment marks a pivotal shift in RBI’s leadership structure and strategic priorities.

A New Era in RBI Leadership

In a key development for India’s central banking structure, Shirish Chandra Murmu officially took charge as the Deputy Governor of the Reserve Bank of India (RBI) on October 10, 2025. He succeeds M. Rajeshwar Rao, who retired a day earlier after an impactful tenure that steered the central bank through evolving regulatory and financial landscapes.

Murmu’s appointment comes at a crucial time for the RBI as it navigates a period of global economic uncertainty, digital transformation in banking, and the growing importance of monetary stability amid inflationary pressures.

A Seasoned Central Banker at the Helm

A career central banker with over 33 years of experience, Murmu joined the RBI in 1991 and has since served in several critical departments. Before his elevation, he was an Executive Director at the RBI, known for his expertise in regulation, risk management, and credit oversight.

His prior assignments include serving as the RBI’s nominee director on the Boards of Bank of India and Dena Bank, as well as ECGC Limited. This deep institutional familiarity positions Murmu to play a pivotal role in shaping India’s evolving banking and financial system.

Appointed for a three-year term—or until further notice—Murmu joins the existing deputy governors T. Rabi Sankar, Swaminathan Janakiraman, and Poonam Gupta. Following his appointment, the RBI restructured and distributed its 32 departments among the four deputies, signaling an administrative recalibration aimed at streamlining policy implementation.

Understanding the Role of a Deputy Governor

The Deputy Governors of the RBI play a vital role in steering key verticals like monetary policy, supervision, financial inclusion, foreign exchange management, and payment systems. Each deputy typically oversees several specialized departments, working in tandem with the RBI Governor and the Central Board to ensure financial stability and regulatory coherence.

Murmu’s experience across the bank’s functional divisions—particularly in risk management and banking supervision—suggests his portfolio could lean toward operational oversight and financial system resilience.

The Reserve Bank of India: A Legacy of Stability

Founded on April 1, 1935, under the Reserve Bank of India Act, 1934, the RBI stands as the central monetary authority of the country. Initially established based on the Hilton Young Commission’s recommendations, the RBI was nationalized in 1949, marking a turning point in India’s financial sovereignty.

The RBI’s early years saw it take over the functions of the Controller of Currency and the Imperial Bank of India, managing government accounts, public debt, and note issuance. Over time, it evolved into a multi-dimensional institution, balancing the dual mandates of price stability and economic growth.

Notably, the RBI also played a developmental role in post-independence India, helping establish institutions such as:

  • Industrial Development Bank of India (IDBI)
  • National Bank for Agriculture and Rural Development (NABARD)
  • Deposit Insurance and Credit Guarantee Corporation (DICGC)
  • Unit Trust of India (UTI)

These institutions were designed to strengthen India’s financial infrastructure and advance inclusive growth—values that continue to shape RBI’s mission today.

Core Functions and Objectives of the RBI

As India’s central monetary authority, the RBI performs multiple critical functions that influence every layer of the economy:

  • Monetary Policy Management: Maintaining price stability while supporting economic growth.
  • Regulation of Financial Institutions: Supervising banks to protect depositors and sustain public confidence.
  • Currency Issuance: Managing the production and circulation of banknotes and coins.
  • Foreign Exchange Management: Overseeing the Foreign Exchange Management Act (FEMA), 1999, and ensuring a stable forex market.
  • Developmental Initiatives: Promoting financial inclusion, credit flow to priority sectors, and sustainable economic development.
  • Payment and Settlement Systems: Ensuring safe, efficient, and accessible digital payment frameworks.
  • Banker to Government and Banks: Managing accounts and public debt for central and state governments, while also serving as a lender of last resort to banks.

These roles are guided by the Central Board of Directors, a 21-member body that includes the Governor, four Deputy Governors, and representatives from the government and industry.

Expert Insights: What Murmu’s Appointment Means

Financial analysts view Murmu’s appointment as a strategic move to strengthen the RBI’s operational and regulatory framework.
“Murmu’s long-standing career within the institution gives him a deep understanding of India’s monetary ecosystem,” said a senior economist at a Mumbai-based think tank. “His experience in both regulation and risk management will be invaluable at a time when the central bank is expanding oversight over fintech, digital lending, and cybersecurity.”

Industry watchers also expect Murmu to contribute significantly to the RBI’s digital transformation roadmap, particularly as India’s payment systems and digital currencies evolve.

Implications and the Road Ahead

Murmu’s elevation coincides with a period of policy recalibration within the RBI, as it balances inflation control with supporting economic growth amid global headwinds. With India’s financial system becoming more interconnected and digitally driven, his leadership will likely focus on robust supervision, innovation, and resilience.

Furthermore, as the RBI continues to navigate issues like cryptocurrency regulation, green finance, and cross-border payment systems, Murmu’s expertise will help steer policy responses that safeguard financial stability while encouraging innovation.

Conclusion

The appointment of Shirish Chandra Murmu as Deputy Governor represents more than a personnel change—it marks the continuity of institutional strength within India’s most vital financial institution. As the RBI continues its mission to maintain monetary stability and promote inclusive growth, Murmu’s leadership will play a defining role in shaping India’s financial future.

Disclaimer:This article is for informational purposes only. It does not represent financial advice or an official statement from the Reserve Bank of India.