Expectations high as Urjit Patel appointed RBI Gov

RBI Governor Raghuram Rajan (centre) with Deputy Governors Urjit Patel, H R Khan during the press conference in Mumbai. Photo: Kamlesh Pednekar. File photo

Deputy Governor Urjit Patel, who will take charge as the 24th Governor of the Reserve Bank of India (RBI) was congratulated by Finance Minister Arun Jaitley and other members of the banking sector and India Inc for his new innings as incumbent Raghuram Rajan demits office in the first week of September.

Congratulating Patel, Finance Minister Arun Jaitley in a tweet said, "I'm sure he will successfully lead the Reserve Bank and contribute to India's economic development."

"Urjit Patel will contribute to India's economic development as the next Reserve Bank governor," he added exuding confidence.

Founder, MD and CEO Yes Bank, Rana Kapoor, in a statement said it is an outstanding choice for very many reasons.

"First and foremost is business as usual. Two, there is continuity of monetary policy measures which have been reasonably successful and I am sure there will be receptivity to the growth imperatives as the new governor chairs the monetary policy committee (MPC) and the third point is that the de-risking of the Indian economy," he said.

"I think having a governor who knows the system and continues with some of the policies and can attend to the imperatives of the growth and the de-risking of the economy to me makes a very good choice and this is a very good decision by the Government of India," he added.

SBI chairman Arundhati Bhattacharya, who was amongst the top contenders for the post said, "Patel has been at the helm of institutionalizing the inflation targeting regime in the monetary policy framework. His appointment signals continuity of policy intent, both on part of RBI and the government."

"Policies for inflation, policy of stimulating growth, policies for solving the banks' NPA (non-performing asset) for them and hoping that the financial sector especially, the banking sector all great reforms and we need other two to three years of continuity to feel the impact and 2019 again we are going to have election again," said Chairman Manipal Global Education, TV Mohandas Pai.

"The government cannot afford a radical change, but the thing of priority for them would be inflation, because inflation is showing its ugly head again at 6.05 percent in the last round. Secondly, how to solve banks' problems and stimulate growth as it has stalled. Investment is not coming so he is going to solve the banking NPA problem before solving any," he added.

Patel, who turns 53 in October, will also be among the youngest governors in RBI. The others to take charge at an early age include Raghuram Rajan and Chintamani Deskhmukh.

Patel, who will be watched for handling of inflation, interest rates bad loan clean-up at banks and the upcoming NRI deposit redemptions, has an M. Phil degree from Oxford University.

He was also with the International Monetary Fund (IMF) between 1990 and 1995 where he covered the US, India, Bahamas and Myanmar desks. 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.

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