He will assume office on December 11 as the 26th Governor of the RBI for a three-year term. The role of the RBI Governor is one of the most prestigious positions in India’s financial system, encompassing responsibilities such as formulating monetary policy, regulating the banking sector, and ensuring financial stability.
RBI Governor’s Salary and Benefits
According to a 2017 report by Press Trust of India (PTI), the RBI Governor receives a basic monthly salary of Rs. 2.5 lakh. The total compensation includes allowances like grade and education allowances
Former RBI Governor Raghuram Rajan once reflected on the salary and perks of the position during an interview on the Figuring Out podcast with Raj Shamani. He revealed that during his tenure, the salary was Rs. 4 lakh per year.
RBI Governor’s House of Rs.450 Crore
The Governor enjoys several perks, the most notable being an official residence in the upscale Malabar Hill area of Mumbai. This property, valued at approximately Rs. 450 crore, reflects the significance of the position.
In podcast, Raghuram Rajan had emphasized that the official residence—an expansive colonial-era house near Dhirubhai Ambani’s residence on Malabar Hill—was the most significant perk.
Other Benefits offered to RBI Governor
Additionally, the Governor is provided with an official car, medical services, and a pension. Despite these benefits, the basic pay has remained unchanged since its revision in 2016 during Urjit Patel’s tenure. Comparatively, Deputy Governors earn Rs. 2.25 lakh per month, with the Governor’s salary being Rs. 31,500 higher.
Raghuram Rajan on the RBI Governor’s Compensation
When questioned about the adequacy of the salary, Rajan explained that it aligns with other senior government roles, such as the Cabinet Secretary. He noted that most RBI Governors do not receive a pension, as many come from civil services and already have pension benefits. He also acknowledged that while some exceptions exist, such as Governors with long service to the RBI or government, the salary structure generally reflects the role’s symbolic rather than financial rewards.
Rajan further elaborated on the perks of the position, mentioning the provision of an official car and the maintenance of the Governor’s residence. While discussing the use of official vehicles, he remarked that luxury cars for official purposes would be inappropriate in a country like India
1 comment:
The salary is very meagre
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