RBI Deputy Governor T Rabi Sankar appointed part-time member

The 16th Finance Commission, constituted by the Government of India on December 31, 2023, is chaired by Arvind Panagariya, former Vice Chairman of NITI Aayog. The Commission also comprises full-time members Annie George Mathew (retired bureaucrat) and economist Manoj Panda, with SBI Group Chief Economic Advisor Soumya Kanti Ghosh serving as another part-time member. Ritvik Pandey serves as Secretary to the Commission, supported by two Joint Secretaries and one Economic Advisor.

The Commission is mandated to submit its recommendations by October 31, 2025, which will cover the five-year period beginning April 1, 2026. Its key responsibilities include recommending the distribution of tax revenues between the Centre and states, suggesting measures to enhance state revenues, and reviewing the fiscal arrangements for disaster management funding under the Disaster Management Act, 2005.

The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution to provide a framework for fiscal federalism. The previous (15th) Finance Commission, chaired by NK Singh, recommended a 41 per cent share of the divisible tax pool to states for the period 2021–2026, continuing the same devolution rate as the 14th Finance Commission led by YV Reddy.

Sankar's appointment to 16th Finance Commission: A profile of experience and institutional knowledge

T Rabi Sankar, currently serving as Deputy Governor of the Reserve Bank of India (RBI), has been appointed as a part-time member of the 16th Finance Commission. His inclusion comes at a time of leadership reshuffle within the Commission, following the resignation of former Finance Secretary Ajay Narayan Jha due to personal reasons.

Sankar brings with him extensive experience in central banking, having joined the RBI in 1990. Throughout his career, he has held several key roles within the institution. Prior to his elevation as Deputy Governor in 2021, he served as Executive Director, overseeing departments such as Payment and Settlement Systems, Information Technology, FinTech, and Risk Monitoring.

In his current capacity as Deputy Governor, Sankar is responsible for several critical portfolios, including the FinTech Department, Financial Markets Operations Department, and the Financial Markets Regulation Department. He has also been instrumental in the development and launch of the Central Bank Digital Currency (CBDC) in India, positioning the RBI at the forefront of digital financial innovation.

In April 2025, the Appointments Committee of the Cabinet (ACC) approved his reappointment as Deputy Governor for a one-year term.

The 16th Finance Commission, constituted in December 2023 and chaired by economist Arvind Panagariya, is tasked with making recommendations on the distribution of the net proceeds of taxes between the Union and the States, as well as among the States themselves. The Commission is a constitutional body established under Article 280 of the Indian Constitution.

Key features of the Commission's mandate include addressing vertical imbalances between the taxation powers and expenditure responsibilities of the Centre and States, and ensuring the equalisation of public service standards across states.