Urjit Patel reappointed as Deputy Governor of RBI
Government has reappointed Urjit Patel, as Deputy Governor of Reserve Bank of India, for a second term of three-year. Patel is the fourth deputy governor, the other three being HR Khan, R Gandhi and SS Mundra.
He headed a committee that paved the way for the proposed monetary policy committee. He was earlier appointed as deputy governor for a period of three years from January 11, 2013. Patel is a close confidante of Rajan for shaping and implementing monetary policy.
Structure of RBI : The functioning of RBI is mainly governed by 21-member Central Board of Directors: the Governor, 4 Deputy Governors, 2 Finance Ministry representatives,10 government-nominated directors to represent important elements from India's economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.
Deputy Governor of RBI : RBI has four DGs two filled from the rank and others hired from outside. Out of the last lot, one is a commercial banker and the other an economist.
About Urjit Patel :
Urjit Patel born on 28 October 1963, received his doctorate in economics from Yale University in 1990) and M Phil from Oxford (1986). Patel is the fourth deputy governor of RBI, prior to his appointment as the deputy governor at RBI in 2013, Patel was advisor (energy & infrastructure) with Boston Consulting Group.
Career Milestone :
- 1990-95: Worked with the International Monetary Fund (IMF), covering the US, India, Bahamas and Myanmar desks
- 1996-97: On deputation from the IMF to Reserve Bank of India
- 1998-01: Consultant to the Department of Economic Affairs
- 2000-04: Worked closely with several central and state govt panels
- 2013 : Deputy governor, Reserve Bank of India
Committee headed by Urjit Patel :
During his tenure, Patel spearheaded a committee that in January 2014 recommended targeting consumer inflation to control historically volatile prices, shifting the focus away from wholesale prices. The changes are considered among the most significant since India opened its economy in 1991. The suggestions of the Patel panel were adopted last February with the signing of an agreement between the Government and RBI on February 20.
The Patel panel report is the basis of the monetary policy committee, which takes a lot of powers of the RBI and the governor and also aims to create a public debt management agency. Under the independent monetary policy committee, which is being set up, the government will set an inflation target to the RBI and the governor will be made answerable to Parliament if he fails to contain inflation at the given target