In June 2025, T. Rabi Sankar, currently serving as Deputy Governor of Mumbai (Maharashtra) Reserve Bank of India (RBI), has been appointed as a part-time member of the 16th Finance Commission(FC) (XVIFC). He will serve from the date of appointment to the date FC submits its report or October 31, 2025, whichever is earlier.
- He was appointed by the President of India, Droupadi Murmu on the recommendation of the Department of Economic Affairs (DEA), Ministry of Finance (MoF) which issued notification in accordance of clause (1) of Article 280 of the Constitution read with the provisions of the FC (Miscellaneous Provisions) Act, 1951 (33 of 1951).
- The appointment of T. Rabi Sankar came after the resignation of Ajay Narayan, one of the full-time members of 16th FC, on personal grounds.
About T. Rabi Sankar:
i.He Joined the RBI in 1990, rising through key roles including Executive Director(ED) of Payments,Information Technology(IT), and Risk Management.
i.He worked as a consultant with Washington D.C. (the United States of America, USA) based International Monetary Fund (IMF) from 2005 to 2011, focusing on government bond markets and debt management.
iii.He was appointed as Deputy Governor of the RBI in May 2021 for a three-year term, which was later extended by one year in May 2024, allowing him to serve until May 2025.
iv.He has played an important role in the launch of the Central Bank Digital Currency (CBDC).
v.He also worked as Chairman of Mumbai (Maharashtra) based Indian Financial Technology and Allied Services (IFTAS).
About Finance Commission (FC):
i.FC is a constitutional body formed under Article 280 of the India Constitution. The primary function of the FC is to recommend the distribution of tax revenues between the Union and states.
- The first FC was established on 22nd November 1951, with Kshitish Chandra Neogy serving as its first Chairman.
ii.In 2023, the Government of India (GoI) constituted the 16th FC under the chairmanship of Arvind Panagariya, former vice-chairman of NITI Aayog.
- The commission is expected to submit its recommendations by October 31, 2025, which will apply for a 5 year period beginning from April 01, 2026.
iii.The commission comprises 4 members and is assisted by Secretary Ritvik Pandey, two joint secretaries and one economic advisor.
- Full time members of the 16th FC are: Retired bureaucrat Annie George Mathew and economist Manoj Panda.
- While, Soumya Kanti Ghosh, Chief Economic Advisor (CEA) of Mumbai (Maharashtra) based State Bank of India (SBI) Group, is a part-time member of the commission.
Recent Related News:
In May 2025, the Reserve Bank of India (RBI) officially notified the formation of a six member Payments Regulatory Board (PRB) headed by RBI Governor under the Payments Regulatory Board Regulations, 2025 to regulate and supervise payment systems in India.This new board replaces the existing Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).
