The Reserve Bank of India (RBI) has appointed Kesavan Ramachandran as its new Executive Director (ED), effective July 1, 2025. With over three decades of diverse experience within the central bank, Ramachandran now takes charge of the Prudential Regulation Division under the Department of Regulation, a critical function that governs the financial health and risk management standards for India’s banking system.
Strengthening RBI’s Regulatory Backbone
As Executive Director, Ramachandran will be at the forefront of designing and implementing prudential norms related to capital adequacy, asset quality, loan loss provisioning, and systemic risk mitigation. This role is crucial at a time when the Indian banking sector is undergoing structural shifts, including greater NBFC integration, digital lending supervision, and increased foreign participation.
His appointment aligns with the RBI’s strategic focus on bolstering financial system resilience and enhancing risk-based supervision in light of global uncertainties and domestic growth ambitions.
30+ Years of Experience in Core RBI Functions
Kesavan Ramachandran’s journey in RBI spans over 30 years, during which he has served in leadership roles across multiple departments:
Risk Monitoring (as Principal Chief General Manager)
Banking Supervision
Currency Management
NBFC Regulation
He has played a key role in strengthening oversight practices and institutional frameworks, particularly in the aftermath of NBFC-related stress episodes in the Indian financial system.
Notable Academic & Professional Background
Ramachandran is academically equipped with:
A Postgraduate degree
An MBA in Banking and Finance
ACCA (UK) certification in International Financial Reporting
Certified Associate of the Indian Institute of Banking and Finance (IIBF)
He has also served:
On the board of Canara Bank as RBI’s nominee for five years
On the Auditing and Assurance Standards Board of ICAI for two years
His international exposure and accounting expertise make him well-suited to align India’s prudential norms with evolving Basel III and IFRS frameworks.
Legacy in Training & Talent Development
Beyond regulation, Ramachandran has made lasting contributions to the RBI’s internal learning ecosystem. As Principal of the Reserve Bank Staff College, he led talent development initiatives, promoting a culture of regulatory excellence and cross-functional training.
His efforts helped shape many current RBI leaders, especially in emerging areas like cyber-risk management, stress testing, and financial innovation supervision.
New Challenges Ahead: Digital Lending, ESG, and Financial Innovation
Under Ramachandran’s leadership, the Prudential Regulation Division is expected to:
Update norms for digital lending platforms and fintech–bank partnerships
Integrate climate risk assessment and ESG disclosure standards into banking supervision
Develop macroprudential tools to manage asset bubbles and emerging credit risks
This comes at a time when India is also targeting a banking credit-to-GDP ratio of 130% by 2047 to support its goal of becoming a developed economy.
