Urjit Patel Takes Charge

Urjit Patel assumed charge as the 24th governor of the Reserve Bank of India with effect from September 4. He succeeds Raghuram Rajan.
Patel takes over as India shifts to a system in which interest rates will be set by the monetary policy committee, on which the RBI governor will have a casting vote.How Patel balances the two key aspects of growth dynamics -inflation management and better credit delivery -will be keenly watched, analysts said.
A PhD in economics from Yale University , Patel needs to ensure the sluggish global economic environment does not impact India. He will deliver his first monetary policy statement on October 4 but given the recent rise in food and vegetable prices, the likelihood of a rate cut is remote. A clearer picture on price movements may emerge on September 12, when the government releases consumer price index data.
Rajan, whose three-year term ended on September 4, is returning to his academic job in the US. The formal oath-taking ceremony will be held on Tuesday as September 4 was Sunday and September 5 was a holiday in Maharashtra on account of Ganesh Chaturthi.
Since Patel served as RBI deputy governor since January 2013 and was in charge of monetary policy, he's not seen deviating from Rajan's approach. As deputy governor, he chaired the expert committee to revise and strengthen the monetary policy framework. The panel drew up the five-year inflation target of 4% with a two percentage point margin that has been adopted by the government. Patel was re-appointed as deputy governor in January after completing his first three-year term.
During his tenure at the International Monetary Fund, he was deputed to RBI in 1996-97 and gave advice on debt market development, banking sector reforms, pension fund reforms and evolution of the foreign exchange market.
Representing India, he actively participated in steering the intergovernmental treaty and InterCentral Bank Agreement (ICBA) among BRICS nations. That led to establishment of the Contingent Reserve Arrangement (CRA), a swap line framework among the central banks of these countries.
Patel was a consultant to the finance ministry from 1998 to 2001 and worked closely with several central and state government committees.

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