New Delhi [India], June 7 (ANI): T Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), has been appointed as a part-time Member of the Sixteenth Finance Commission on Saturday.

The appointment of Sankar is consequent to the resignation of one of the full-time Members of the XVIFC, Ajay Narayan Jha, on personal grounds.

The Department of Economic Affairs of the Finance Ministry in a notification said, 'In pursuance of clause (1) of article 280 of the Constitution read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951 (33 of 1951), the President is pleased to appoint T Rabi Sankar as a part-time Member of the Sixteenth Finance Commission.'

He will be a part-time Member of the Sixteenth Finance Commission from the date of appointment to the date the Commission submits its report or 31 October 2025, whichever is earlier.

Sankar is currently overseeing the key portfolios of the FinTech Department, the Financial Markets Operations Department, and the Financial Markets Regulation Department at the Reserve Bank of India (RBI).

Sankar has played a pivotal role in the launch of the Central Bank Digital Currency (CBDC).

In April, the Appointments Committee of the Cabinet (ACC) approved T. Rabi Sankar's reappointment as Deputy Governor of the Reserve Bank of India (RBI) for one year.

Sankar was Executive Director of the Reserve Bank before being elevated to the post of Deputy Governor in 2021.

T. Rabi Sankar, a seasoned central banker, joined the Bank in 1990 and has held various positions at the Reserve Bank of India. As Executive Director, he oversaw the Department of Payment and Settlement Systems, the Department of Information Technology, Fintech, and the Risk Monitoring Department at the RBI.

The government appointed Arvind Panagariya as the Chairman of the 16th Finance Commission in 2023.

The commission makes recommendations about the distribution of the net proceeds of taxes between the Union and the States.

The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on the distribution of tax revenues between the Union and the States and amongst the States themselves.

Two distinctive features of the Commission's work involve redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the centre and the States, respectively, and equalisation of all public services across the States. (ANI)