New Chief for India’s RBI
New Delhi : The Indian government yesterday named insider Urjit Patel as the new governor of the Reserve Bank of India, to replace popular central banker Raghuram Rajan when his term ends in September.
The promotion of deputy governor Patel ends weeks of feverish speculation by the Indian media since Rajan caught investors off guard in June by announcing he was leaving to return to academia.
The naming of an insider to the top job suggests the government hopes to continue the approach of the much-admired outgoing chief -- dubbed “rock-star Rajan” -- when he steps down on September 4.
“Dr Urjit R Patel new Governor of RBI,” Frank Noronha, principal spokesperson for the Indian government posted on Twitter.
One of four RBI deputies, Patel, 52, currently runs the central bank’s monetary policy department, working closely with Rajan, who is credited with taming inflation and tackling India’s mountain of soured bank loans.
The chief of the RBI is typically chosen by the prime minister in consultation with the finance ministry, making Patel the first governor to be chosen by right-wing Prime Minister Narendra Modi.
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