Urjit Patel is the second person in the country to become the Reserve Bank of India Governor directly, from being a deputy governor. C.D. Deshmukh was the first deputy governor to be promoted to the central bank chief’s post, in 1943. Mr. Patel will take over the mantle from Mr. Raghuram Rajanin in early September, when the latter’s tenure ends.
An big advantage in appointing Mr. Patel as the RBI governor is that he knows the system and its people, sources in the central bank said.
Officials at the RBI also said that a governor’s chances for success are higher if the person is not a ‘greenhorn’ parachuted from elsewhere.“Since the outgoing governor talked about unfinished tasks, Mr. Patel is best suited to take over the mantle,” said a former colleague of the new RBI governor-designate.
‘Open mind’His colleagues describe him as an open-minded person who is logical and, if convinced, makes quick decisions. They cited this as being a rare trait among regulators.
Mr. Patel headed a committee, with members from across the spectrum in the financial sector, which was set up to revisit the monetary policy framework. Members of the committee described him as a true professional.
“My working in the committee gave me a very high degree of professional experience. He is a thorough professional,” said Rupa Rege Nitsure, group chief economist of L&T Finance Holdings who was a member of the Urjit Patel Committee set up to revise and strengthen the monetary policy framework. “His credentials as a monetary economist are very strong – hence his leadership role in the committee,” Ms. Nitsure added.
Mr. Patel’s appointment will also “convince the market about the government’s resolve to fight inflation”, a market analyst said.
“As our fiscal and monetary policy need to work together, continuity (with) a monetary policy expert as the RBI Governor will be viewed positively, by the international rating and investing community, to India's advantage in the medium-term,” said Gagan Banga, Vice Chairman and MD, Indiabulls Housing Finance.
