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Urjit appointed RBI governor

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Update: 2016-08-20 09:49:59
Urjit appointed RBI governor Photo Courtesy: Hindustan Times

DHAKA: Urjit Patel, Reserve Bank of India (RBI) deputy-governor, will take over as the central bank’s new head, ending two months’ speculation about Raghuram Rajan’s successor.

Patel’s appointment can bring continuity to monetary policy in the country. He was Rajan’s deputy when Rajan had repeated face-offs with the political establishment for ignoring calls to cut interest rates.

Rajan told the government in June that he will return to teaching, reports Hindustan Times.

Patel will assume office as the 24th RBI governor for three years on September 5, a day after Rajan’s term ends.

As India’s top banker, Patel’s primary duty is to keep prices stable and ensure credit flow to companies and individuals. He will lead a team of about 17,000 and draw a salary of about Rs 200,000 per month besides allowances and perks.

The RBI regulates banks, prints money and prevents volatility in the foreign exchange market. It is also the government’s banker and lender of last resort.

Patel (53) is a PhD from Yale University and has worked at the International Monetary Fund (IMF), The Brookings Institution at Washington and the Massachusetts-based Boston Consulting Group.

Patel, who has been the deputy governor since January 2013, has been key in framing the monetary-policy framework that the central bank has adopted. It makes taming inflation the central bank’s primary priority.

Patel headed a committee that in 2014 recommended targeting retail inflation to tame unstable prices, shifting the focus away from wholesale prices.

The new framework will remove speculation in RBI’s interest rate decisions.

BDST: 1942 HRS, AUG 20, 2016
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