RBI Deputy Governor Urjit Patel will take charge as the 24th Governor of the Reserve Bank of India when incumbent Raghuram Rajan demits office on 4th september.His Experience in various capacities will only boost Economy provided he given full control to work .Few Facts about his life and journey till date are aligned here.👇
Urjit Patel, who has an M.Phil degree from Oxford University, was an advisor with Boston Consulting Group before his appointment as the deputy governor at RBI in 2013.
He was also with the International Monetary Fund (IMF) between 1990 and 1995 .He was on deputation to the Reserve Bank from the IMF between 1996 and 1997 after which he was a consultant (1998-2001) to the Department of Economic Affairs in the finance ministry.He had also been with Reliance.
Patel’s appointment assumes significance given the controversial departure of Rajan, who was publicly targeted by senior BJP leader Subramanian Swamy, and chose not to seek a second term in office.The government’s image too took a knock, with industry captains and institutional investors criticizing the handling of the issue.Former RBI Deputy Governors Rakesh Mohan, Subir Gokarn, Vice Chairman of the NITI Aayog Arvind Panagariya and SBI Chairperson Arundhati Bhattacharya were said to be the other contenders to the post.
And while the economy is far more stable than it was when Rajan had taken charge, Patel has a tough act to follow, given the high standards sets by his outgoing predecessor.
Focus needs to be on inflation, NPAs Patel’s handling of inflation, interest rates bad loan clean-up at banks, and the upcoming NRI deposit redemptions will be closely watched by the market.He led the committee that, in 2014, suggested that RBI adopt a formal inflation targetting method and formulate a monetary policy committee (MPC) to take interest rate decisions to achieve its inflation targets.Recently, the government agreed to both clauses, adopting a 4 percentlong term inflation target.
But even more closely watched will be his ability to maintain the RBI’s autonomy and extract tough promises from the government on fiscal discipline, something that Rajan excelled at.There is talk that one of the reasons the government was not too keen on retaining Rajan was that it would need a governor sympathetic to its vision of a monetary policy in the run-up to the 2019 general elections. Rajan has often been criticized for keeping interest rates high and giving priority to low inflation over growth.
Hopes of interest rate cuts have risen in the days following Rajan’s announcement to quit. However, the renewed spike in consumer and wholesale inflation has somewhat tempered the expectations.
Over the many years of work and research in India, Urjit Patel has impressed many, including P V Narasimha Rao, Dr Manmohan Singh, P Chidambaram, Narendra Modi, Arun Jaitley, and Raghuram Rajan, among others.
In 2013, when he was offerred to become the deputy governor of RBI, his recommendation letter was written by none other than the then Prime Minister Dr Manmohan Singh.Serving as the deputy governor at the RBI, Patel was seen as Raghuram Rajan’s right hand man. Patel headed the committee that introduced the landmark changes in the monetary policy formulation of the central bank, reports First Post. These reforms have helped India battle inflation, and are considered to be among the most important reforms since 1991.
Hope he will figure out the Common people issues their economic condition,growth and Indian economics stability.
Jai Hind 🇮🇳