A key change in the 16th Finance Commission lineup was announced on Saturday with RBI Deputy Governor T Rabi Sankar appointed as a part-time member, following the resignation of Ajay Narayan Jha on personal grounds.In a notification issued by the Department of Economic Affairs, the Finance Ministry stated, “In pursuance of clause (1) of article 280 of the Constitution read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951, the President is pleased to appoint T Rabi Sankar as a part-time Member of the Sixteenth Finance Commission.” His term will run until the Commission submits its report or October 31, 2025, whichever is earlier.Currently, Sankar oversees the FinTech Department, the Financial Markets Operations Department, and the Financial Markets Regulation Department at the RBI. He has also been instrumental in the rollout of the Central Bank Digital Currency (CBDC).In April, the Appointments Committee of the Cabinet approved his reappointment as RBI Deputy Governor for one year. He was earlier Executive Director at the central bank, heading departments such as payment systems, information technology, fintech and risk monitoring.Sankar, who joined the RBI in 1990, joins a Commission chaired by economist Arvind Panagariya. The 16th Finance Commission, constituted in 2023, is tasked with recommending the distribution of net tax proceeds between the Union and the States and among States themselves.The Finance Commission’s broader mandate includes redressing vertical fiscal imbalances between the Centre and States and promoting equity in public service delivery across States
