NEW DELHI: Urjit Patel is the new Reserve Bank of India Governor, the Finance Ministry announced on Saturday. Patel will succeed Raghuram Rajan as the RBI chair once he steps down on September 3, after his term comes to an end. He will be India’s 24th RBI Governor.
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FLASH: Urjit Patel appointed new RBI Governor
6:19 PM – 20 Aug 2016
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Finance Minister Arun Jaitley met with Prime Minister Narendra Modi on Saturday to discuss the appointment of the next RBI Governor, a topic that has seen much speculation in the last few months.
One of the RBI’s four deputy governors, Patel, 52, was reappointed in January for another three years. He has run the central bank’s monetary policy department since 2013 and is viewed as a leading contender for the governor’s job.
Seen as a close lieutenant to Rajan, Patel headed a committee that introduced landmark changes including a switch to inflation-targeting and adopting consumer prices as the new benchmark instead of wholesale prices. The changes he helped drive are considered to be among the most significant monetary policy reforms since India opened up its economy in 1991.
Patel, whose remit at the RBI included managing money markets, has faced criticism from market participants, however, with some traders and bankers complaining that he kept liquidity tight at a time when the RBI was lowering rates, starving banks of cash.
Patel, according to a Nomura note, is considered a ‘hawk’ on his monetary policy stance.
Prior to his appointment as the Deputy Governor at RBI in 2013, Patel was advisor (Energy and Infrastructure) with Boston Consulting Group, while he has also worked with Reliance Industries in the past. Patel, born on October 28, 1963, received his doctorate in economics from Yale University in 1990) and M Phil from Oxford (1986). He has worked with the International Monetary Fund (IMF) between 1990 and 1995 covering the US, India, Bahamas and Myanmar desks.
(With inputs from Agencies)