Updated: August 20, 2016 8:44:44 pm
The government on Saturday named economist and banker Urjit Patel the next Governor of the Reserve Bank of India (RBI) to succeed Raghuram Rajan — a development eagerly awaited for two months now.
Patel, 52, a Deputy Governor since January 2013 and on a three-year further term since January this year, will take over as the 24th chief of India’s central bank on September 4, according to an official communique.
As per the decision taken by the Appointments Committee of the Cabinet, chaired by Prime Minister Narendra Modi, Patel gets a three-year tenure, a press note said. Rajan, too, had a three-year stint.
“The appointment has been made based on the recommendations of the Financial Sector Regulatory Appointments Search Committee headed by Cabinet Secretary. The Committee undertook an extensive exercise to suggest a panel of names to the Appointments Committee of the Cabinet,” it said.
Ever since Rajan, in an unprecedented letter to his colleagues in June, said he was opting out of a second term at the helm of India’s central bank, speculation has been rife over who his successor would be — particularly given the outspoken nature of the incumbent and the eyebrows he raised.
Rajan is going back to academics at the University of Chicago.
Patel was particularly picked for his expertise in inflation-control, which has become the main task of the central bank, ever since the government, under statute, set it a target of 4 percent, plus or minus two percentage points, based on consumer price index.
Patel, whose experience includes a mix of stints with multilateral institutions, bureaucracy, central bank, global consultancies and even private companies, has previously served the International Monetary Fund (IMF) in the US, India, Bahamas and Myanmar.
Here’s how the Twitterati reacted:
— Mansukh Mandaviya (@mansukhmandviya) August 20, 2016
Economy in good hands with Urjit Patel as RBI Governor. Globally respected, eminent economist, had strategic experience in BCG- great choice
— Harsh Goenka (@hvgoenka) August 20, 2016
Great EQ – Urjit Patel. Besides the given of being highly competent.
— Sandeep Parekh (@SandeepParekh) August 20, 2016
Welcome to new RBI governor, Sh Urjit Patel. https://t.co/xQcOUAX2kI
— Vijay Shekhar (@vijayshekhar) August 20, 2016
Hearty Congratulations to Shri Urjit Patel for being appointed as the Governor of the Reserve Bank of India.#RBI
— Shetal Sheth (@Sshetal) August 20, 2016
To pacify agitating patel’s in gujurat , urjit patel named RBI governor.
Reservation Bank of India
— Yogesh Singhvi (@SinghviYogesh) August 20, 2016
Urjit PATEL to be new Rbi gov.Finally the wait is over & it’s an anticlimax for media as well & critics of Raghuram Rajan! Excellent choice!
— Lav Kumar (@imlav1) August 20, 2016
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