Finance Minister Arun Jaitley welcomed the 24th Reserve Bank of India governor after his ministry announced that the current central bank deputy governor, Urjit Patel, will take the baton from Raghuram Rajan once the latter's term comes to an end on September 4.
"I'm sure he will successfully lead the Reserve Bank & contribute to India's economic development," Jaitley tweeted while congratulating Patel, who is currently Deputy Governor at the RBI. Named as 24th Governor of the Reserve Bank, Patel will take over as head of the central bank from Raghuram Rajan on September 4. Revenue Secretary Hasmukh Adhia also conveyed his best wishes to Patel.
"Congratulations to Patel on becoming RBI Governor. I wish him all the best," he tweeted. Government think-tank NITI Aayog's CEO Amitabh Kant said Patel is a "great choice" and has good understanding of macroeconomic scenario of the country.
Commenting on the appointment, former advisor to the erstwhile Planning Commission Pronab Sen said, "This is indicative of continuity. International investors will like that."
SBI Chairman Arundhati Bhattacharya said, "Patel has been at the helm of institutionalising the inflation targeting regime in the monetary policy framework. His appointment signals continuity of policy intent, both on part of RBI and the government."
ICICI Bank MD and CEO Chanda Kochhar said, "As the Deputy Governor of RBI, Urjit Patel has played a key role in developing the new monetary policy framework that has focused on reigning in inflation and has imparted stability to the currency.
"His appointment would ensure a smooth transition and continuity in monetary policy, as India puts in place major structural reforms to transition to a higher growth path." The announcement of new RBI Governor ends months of speculation after incumbent Rajan announced that he would return to academia on completion of his three-year term as head of the central bank on September 4.
An economist by profession, Urjit Patel has his task cut out as the next RBI Governor -- to keep inflation under check without hurting growth -- but he will have to do that without being seen as an interest rate hawk, a title incumbent Raghuram Rajan had to carry unwillingly.
While Rajan's exit has been seen in many quarters as driven by his often candid views against various policies of the government, Patel's appointment as the 24th RBI Governor may end up ensuring continuity of the monetary policy of the current Governor.
Ironically, Rajan will be succeeded by a Deputy who went on to be known as his 'inflation warrior' for steering one of the biggest reforms carried out by the RBI in recent history by changing its face to an inflation-targetting central bank.
