Why is the head of the RBI called 'Governor' instead of 'Chairman' or something else? What is their salary

RBI Governor: The head of the Reserve Bank of India (RBI) is designated as the 'Governor' because they oversee responsibilities such as the country's monetary policy, currency issuance, and the supervision of the banking system.

Reserve Bank of India: The Reserve Bank of India (RBI) is the country's largest banking institution, often referred to as the "Bank of Banks." The RBI plays a pivotal role in matters ranging from printing new currency notes and formulating monetary policy to supervising banks and managing major banking transactions. Essentially, the RBI Governor holds the reins of all these functions. This often leads people to wonder why the head of the RBI is called 'Governor' rather than 'Chairman' or another title. Let us explore this in detail.

Why is the RBI head called 'Governor'?

The RBI is not merely an institution or a system; it is the regulator of the entire national banking framework. It formulates regulations for all banks in the country and makes decisions regarding interest rates. Additionally, it works to maintain the stability of the rupee. For these reasons, its highest-ranking official is designated as the 'Governor.'

In contrast, the term 'Chairman' is typically used for the head of a company or a board, whereas the scope of the RBI Governor's role is far more extensive. This is why the position is named 'Governor.'

What is the RBI Governor's salary?

The Governor of the Reserve Bank of India (RBI) receives a basic monthly salary of approximately ₹2.50 lakh. When dearness allowance and other allowances are added, the total monthly salary can reach around ₹2.80 lakh.

Special facilities provided to the Governor:

Government accommodation
Official vehicle
Driver
Medical facilities
Dearness allowance
Grade allowance
Essential government amenities

Who is the current RBI Governor?

Currently, Sanjay Malhotra serves as the 26th Governor of the Reserve Bank of India. He is a 1990-batch Indian Administrative Service (IAS) officer of the Rajasthan cadre. Prior to becoming the RBI Governor, Sanjay Malhotra served as the Revenue Secretary in the Central Government. Throughout his administrative career, he has held various responsibilities within both the Government of India and the Government of Rajasthan. Currently, as the RBI Governor, he is making decisions regarding the country's banking system and economic policies.