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Urjit Patel - New Central Bank Governor in India

Urjit Patel has been named as the new governor of the Reserve Bank of India.
Will new RBI governor Urjit Patel be able to outdo the brilliant tenure of his predecessor Raghuram Rajan?

Quick Overview:

Raghuram Rajan: Current RBI Governor - 23rd

Education:   

IIT Delhi (B Tech)
IIM Ahmedabad (PGDBM)
MIT Sloan School of Management (PhD)

Term:

three-year term
From 5 September 2013.

Source - Wikipedia


Urjit Patel: New central bank governor - 24th


Education:    

Yale University
Oxford University
University of London

Term:

three-year term with possible 2 year extension.
Starting on : 4th Sept 2016

 Source - Wikipedia


Qualities as RBI Governor-


Raghuram Rajan:

  1. Open-mindedness.
  2. He was open to new ideas.
  3. flexibility.

Urjit Patel:

  • Less outspoken.
  • incredibly low-profile.
  • Workaholism.
  • Laser-like focus on fighting and curbing inflation.

Effect on Banking Sector:


Rajan was very active to clean up the banking sector mess.
Patel will be facing immense pressure to do his best in banking sector.

Contribution of Raghuram Rajan:

  • Strategic debt restructuring
  • Raising of Foreign Currency Non-Resident (B) deposits
  • New inflation-focused framework
  • Nominal interest rate
  • Adopted Global norm - Consumer Price Index (CPI)
  • Licensed two universal banks
  • 11 payment banks
  • Strengthen Forex Reserve.

Challenges for Urjit Patel:

  • Solution for toxic assets at PSU banks.
  • Inflation-targeting.
  • Forex withdrawal
  • Bad loans
  • RUPEE and FCNR
  • New digital banks

Global Reputation:


Raghuram Rajan:

He was chief economist at the IMF from 2003 to 2007.
One of the world's most well-known central bankers.
Rajan has international credibility.
Rajan has the one of the world's greatest CV ever.

Urjit Patel:

Less global reputation but enough credentials.
Served as Deputy Governor of RBI
Contributed in Indian monetary policy, economic policy research.

Who is better?


Although Raghuram Rajan is a man with formidable reputation & Vision, his Tenure was full of achievements & mild controversies. The recent one was his tiff with BJP(ruling party) & its leaders.

Patel is generally considered as hawkish as Rajan. He is one of the best candidate among the shortlisted. His Tenure is expected to continue current monetary policy regime.
Urjit Patel - New Central Bank Governor in India Urjit Patel - New Central Bank Governor in India Reviewed by Admin on 03:04 Rating: 5

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