Urjit Patel replaces Rajan as RBI Governor

Urjit PatelThe government has announced Urjit Patel, 52, as the next governor of the Reserve Bank of India for a three-year term, succeeding Raghuram Rajan who announced in June that he did not wish to stay on in the post.

Patel is currently deputy governor at the RBI and headed a committee on monetary policy reforms. The recommendations of the committee to set an inflation target and create a new Monetary Policy Committee, were backed by PM Narendra Modi’s government.

In general reactions have been optimistic including statements on possible changes in the political economy and policy loosening, as well as welcoming RBI Deputy Governor Dr Urjit Patel to his new post, based upon the belief that the markets would strongly cheer his appointment.