Ajay Banga, an Indian American, took charge of the role of President of the World Bank on Friday.

Banga, the former Mastercard CEO is the first person of colour to lead either of the two global financial institutions, the World Bank and the International Monetary Fund.

The executive directors of the World Bank selected Ajay Banga as the 14th President of the World Bank for a five-year term beginning June 2, 2023. His appointment was announced on May 3.

In February, US President Joe Biden had nominated the business executive to lead the World Bank stating he is “well equipped” to lead the global institution at “this critical moment in history”.

The World Bank expressed its warm welcome to Ajay Banga through a tweet that said, “Join us in welcoming Ajay Banga as the new President of the World Bank Group. We are committed to creating a world free from poverty on a livable planet."

“I wish Ajay Banga all the best as he takes up his new role as President of the World Bank today. I look forward to continuing the deep partnership between our institutions to do good and help those most in need," Kristalina Georgieva, the Managing Director of the IMF, tweeted.

Ajay Banga became the first Indian American to hold the position of President of the World Bank. He takes over from David Malpass, who announced his decision to step down in February.

The president of the World Bank is usually nominated by the American President, while the head of the International Monetary Fund is customarily a European.

Ajay Banga, 63 before becoming the president of World Bank, was serving as vice chairman at equity firm General Atlantic. He was previously President and Chief Executive Officer at Mastercard.

Banga is the first-ever Indian-American and Sikh-American to head either of the two top international financial institutions: the International Monetary Fund and the World Bank.

Banga was born in Pune, India and completed his bachelor's degree in economics from St. Stephen's College, Delhi, and later went on to earn an MBA from the Indian Institute of Management, Ahmedabad.

After completion of his studies, Banga started his career with Nestle India and then worked with Citibank in India and Malaysia.

In 1996, he moved to the United States and joined Pepsico, where he worked for 13 years in various roles, including CEO of the company's operations in India and Southeast Asia.

In 2009, Banga joined Mastercard as its President and Chief Operating Officer and became its CEO the very next year.

Banga is a member of various business and non-profit organizations, including the Business Roundtable, the International Cricket Council, and the US-India CEO Forum.

Banga has previously received several awards and honors for his contributions to business and society.

He was awarded Padma Shri by the Indian government in 2016.