T Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), has been appointed as a part-time member of the 16th Finance Commission. The finance ministry announced this appointment on Saturday, June 7, 2025. This appointment follows the resignation of Ajay Narayan Jha, a former full-time member and former finance secretary, who stepped down on personal grounds. Mr. Sankar will serve from the date he assumes charge until the Commission submits its report or October 31, 2025, whichever comes first.

The 16th Finance Commission, constituted on December 31, 2023, is chaired by Arvind Panagariya, former vice chairman of Niti Aayog. Its members include full-time members Annie George Mathew (a retired bureaucrat) and Manoj Panda (an economist), and part-time member Soumya Kanti Ghosh (SBI Group Chief Economic Advisor). The Commission is assisted by Secretary Ritvik Pandey, two joint secretaries, and one economic advisor. The panel is tasked with submitting its report to the President by October 31, 2025, with recommendations covering a five-year period commencing April 1, 2026. Key responsibilities include suggesting tax devolution between the Centre and states, revenue augmentation measures, and reviewing the current arrangements for financing disaster management initiatives under the Disaster Management Act, 2005.

The Finance Commission is a constitutional body established under Article 280 of the Constitution. Its primary role is to provide recommendations on the financial relations between the Union and the States, including the distribution of tax revenues. The Commission's work aims to address vertical imbalances in taxation powers and expenditure responsibilities between the central and state governments, and to promote the equalization of public services across all states. For context, the 15th Finance Commission, chaired by N.K. Singh, had recommended a 41% share of the divisible tax pool for states for the period 2021-22 to 2025-26, maintaining the level set by the 14th Finance Commission.

T Rabi Sankar is a seasoned central banker who joined the RBI in 1990. In his current capacity as Deputy Governor, he oversees critical departments including the FinTech Department, the Financial Markets Operations Department, and the Financial Markets Regulation Department. He has played a significant role in the launch of India's Central Bank Digital Currency (CBDC). Prior to his elevation to Deputy Governor in 2021, Mr. Sankar served as Executive Director at the RBI, where he was responsible for the Department of Payment and Settlement Systems, the Department of Information Technology, Fintech, and the Risk Monitoring Department. His reappointment as Deputy Governor for an additional year was approved by the Appointments Committee of the Cabinet (ACC) in April.