On July 1, 2025, the Reserve Bank of India (RBI) officially appointed Kesavan Ramachandran as an Executive Director (ED). The appointment was confirmed through an official statement released by the central bank on the same day.
Prior to this promotion, Ramachandran held the position of Principal Chief General Manager in the Risk Monitoring Department. His promotion reflects a recognition of his extensive contributions and long-standing service within the central bank.
In his new role as Executive Director, Kesavan Ramachandran will oversee the Department of Regulation, specifically the Prudential Regulation Division. This department is responsible for formulating regulatory policies for banks and financial institutions, ensuring stability and compliance across India’s financial system.
Kesavan Ramachandran is a seasoned banking professional with over three decades of experience in the Indian financial sector. Throughout his career, he has worked in diverse areas such as:
Currency management
Banking and Non-Banking Financial Company (NBFC) supervision
Training and administration
He has also held important academic and advisory roles, notably serving as the Principal of the Reserve Bank Staff College, a premier institution for training RBI officers.
Ramachandran served as the RBI’s nominee on the Board of Canara Bank for over five years, playing a strategic role in the public sector lender’s governance.
He also contributed to policy and audit frameworks as a member of the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India (ICAI) for a two-year term.
These roles highlight his strong grounding in financial regulation, institutional oversight, and audit standards.
Ramachandran brings a robust academic background to his new position:
MBA in Banking and Finance
Diploma in International Financial Reporting from the Association of Chartered Certified Accountants (ACCA), UK
Certified Associate of the Indian Institute of Banking & Finance (IIBF)
His blend of professional experience and academic expertise makes him well-suited to lead regulatory strategy at the central bank.
Alongside the appointment news, the RBI released its Financial Stability Report (FSR) for June 2025 on June 30, outlining key risks to India’s financial system.
The report flagged rising public debt, elevated asset valuations, and global geopolitical tensions as factors that could increase the likelihood of fresh market shocks.
“Financial markets remain volatile, especially core government bond markets, driven by shifting policy and geopolitical environment,” the RBI stated in the report.
According to the RBI and India’s budget data, public debt is projected to rise significantly in the coming financial year.
Estimated public debt for FY2025-26: ₹196.78 lakh crore
Revised estimates for FY2024-25: ₹181.74 lakh crore
This includes both internal and external liabilities, highlighting a concerning rise in debt that may strain fiscal space and increase borrowing costs.
In addition to fiscal concerns, the RBI warned that stock markets and real estate prices remain at elevated levels, which could amplify economic stress if global or domestic shocks were to materialize.
These conditions, combined with interest rate fluctuations and international uncertainties, make financial market stability a top concern for the regulator.
Conclusion: A Dual Focus on Leadership and Risk
The appointment of Kesavan Ramachandran as Executive Director signals the RBI’s continued focus on institutional leadership and regulatory strength. His vast experience and diverse portfolio make him a strategic asset at a time when the central bank is navigating complex economic risks.
At the same time, the RBI’s June 2025 Financial Stability Report underscores the need for vigilance against mounting public debt and overvalued assets, ensuring that India’s financial system remains resilient in the face of emerging global uncertainties.