After the completion of the first term, he was reappointed for a further span of two years starting from November 22, 2002 and ending on November 21, 2004. Y. Venugopal Reddy succeeded him. During Jalan's term of office, the Indian Rupee note of 1000 denomination was introduced.
Bimal Jalan studied in the Presidency College of Calcutta as well as the Cambridge and the Oxford Universities. He became an economist by profession. Jalan has served in numerous administrative and advisory positions in the Government of India. He became the Chief Economic Adviser in the 1980s, Banking Secretary between 1985 and 1989 and also Finance Secretary, Ministry of Finance. During his term of office as Finance Secretary, he was also a member of the Central Board of Directors of the Reserve Bank of India.
Apart from these posts, Bimal Jalan also served as the Chairman of the Economic Advisory Council to the Prime Minister between January 1991 and September 1992 and as the Executive Director on behalf of India on the Boards of the International Monetary Fund and the World Bank. When he was appointed the Governor of the Reserve Bank, Jalan was the Member-Secretary, Planning Commission in New Delhi.