Well known Economist and Banker Urjit Patel will take the position of RBI Governor
One of the 4 deputy governors in the Reserve Bank of India, Urjit Patel, 52 is all set to be appointed as RBI governor. Incumbent RBI governor Raghuram Rajan’s tenure is ending on 4 September, 2016. Rajan has also been at International Monetary Fund (IMF), as chief economist previously. After end of his tenure he intends to return to teaching.
The appointment has been made on the recommendation of Financial Sector Regulatory Appointment Search Committee (FSRASC). The FSRASC is headed by Cabinet Secretary. The committee made lot of efforts in order to decide the best candidate for the prestigious post of RBI Governor.
Urjit Patel- Rajan’s Inflation Lieutenant
Mr. Patel has headed the monetary policy department at RBI since 2013 and had been reappointed in January 2016 as Deputy Governor. Rajan along with Patel had introduced major changes in the Monetary policies. Rajan shifted from multiple indicator approach to a well defined Inflation targeting method. It was during tenure of Rajan that they set the Consumer Price Index (CPI) as the Benchmark instead of Wholesale Price Index (WPI). Patel is the 8th Deputy Governor to be made as the Governor of RBI.
He is not particularly favourable in regard to easier norms of Monetary policy and is prone to view of neutral to deficit side of liquidity as remarked by many investors and Bankers. However, Patel faces big challenges like Cleaning up the balance sheets of Public Sector Banks who are facing a crisis after huge amounts stuck in NPA‘s (Non-Performing Assets).
Urjit Patel- Profile
Urjit Patel completed Bachelor of Economics from London School of Business. He did his M.Phil from Oxford University has PhD from Yale. He then joined International Monetary Fund (IMF) and worked on USA, India, Myanmar, and Bahamas desks till 1995. Dr. Patel went on deputation to RBI in an advisory role for debt financing, market sectors reforms, pension fund reforms, and most important of all inflation targeting (till 1998). From 2000 to 2004, Dr. Patel worked with several High Level Committees at both Central and State Government level like Competition Commission, Task Force on Direct Taxes, Prime Minister’s Task Force on Infrastructure, Group of Ministers on Telecom Matters, Advisory Committee on Research Projects and Market Studies, Committee on Civil Aviation Reforms etc.
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Sources & References
About this article
- Date – 21 August, 2016
- Content – Rahul Kumar Vashisht
- Edited – Team RARK
- Images – As mentioned in sources and references
Author’s views are his personal, RARK does not support any Political Party nor is affiliated to one. We discuss social issues in an unbiased manner as much as possible.
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