As the nation continue to struggle with keeping up the inflation battle and introducing varied policies in the banking sector, Urjit Patel signs as the new Governor of Reserve Bank of India on Monday i.e. 5th September. Despite being a holiday for Ganesh Chaturthi, the precedent of Raghuram Rajan took over the post on a very low note and minimal fanfare. Well, we are very much acquainted with his visions and work modes, but here in this post, we bring you all the details (personal as well as professional) regarding Urjit Patel, the new RBI governor.
Early Life of Urjit Patel
Born on 28th October 1963 in Kenya to Gujarati parents Urjit R. Patel completed his schooling from Kenya itself. To pursue his graduation in Economics, he opted in London School of Economics, U.K. in 1984. Further, he obtained M.Phil degree from Oxford University in 1986. He completed his doctorate in Economics from Yale University in 1990.
Urjit Patel’s Professional Life
The step of his career was to get into International Monetary Fund in 1990 for India desk which also included USA, Bahamas, and Myanmar desk until 1995. Later, after gathering many experiences as well as an acknowledgement, Urjit Patel got deputed to Reserve Bank of India where he played a pivotal role as Advisory for development in the debt market, banking sector reforms, targeting of real exchange rate, pension fund reforms, etc. He essayed the role for two long years thus proceeding to be as Consultant to Government of India in the Ministry of Finance, Department of Economic Affairs from 1998 to 2001.
Career Phases of Urjit Patel
Urjit Patel worked in various positions along with beholding the post of Consultant to GoI. In 2000, he worked with several High Committee members in both Central and State government. He was posted as Advisor in Boston Consulting Group. He swayed in for the post of President for Business Development in Reliance Industries Limited. Dr Patel also worked in Task Force on Direct Taxes, Prime Minister’s Task Force on Infrastructure, Group of Ministers on Telecom Matters, Advisory Committee on Research Projects and Market Studies, Committee on Civil Aviation Reforms, Expert Group on State Electricity Boards and High Level Expert Group on Civil & Defense Services Pension System and Competition Commission. Further until 2006 he played the role of Executive Director in Infrastructure Development Finance Company along with being one of the Member of Integrated Energy Policy Committee. He also acquired a position of Non-Executive Director at Gujarat State Petroleum Corporation as well as Non-Executive Director in Multi Commodity Exchange of India Ltd.
Achievements of Urjit Patel
During the Congress-led UPA government in 2009, they formed a center for the second time in India; they came up with a ‘100-day action plan’ format. One of the most talked-about strategies within the media, Urjit Patel, confronted them as an Expert commentator over the issue. Working as Deputy Governor with Raghuram Rajan, their understanding on decision-making was perfect with having an excellent strategic approach on finances and banking. He has been economical with his spoken words throughout in deputy governor post, unlike Rajan. In fact, when he applied for Indian Passport in 2013 before becoming DG in RBI, the-then Prime Minister, Dr Manmohan Singh praised and wrote to Home Ministry as, “He is very important for the country.” Also, he was even praised by an outsider thus stating as, “ A central bank governor doesn’t need to have a rock star status to be successful in reining in inflation or cleaning up the banking sector.” The following statement was given by Thomas Rookmaaker, director, Asia-Pacific Sovereigns Group, Fitch Ratings.
Key Challenges As RBI Governor for Urjit Patel
First and foremost challenge which is kept ahead for Dr, Urjit Patel is taking ahead the banking sector reforms thus continuing with inflation battle. Secondly, cleaning up the non-performing assets. Working on the newly set-up framework in CPI inflation target possessing 4% which will be depreciated to 5% by the end of 2021. Tapping the central bank’s funds to recapitalise public sector banks and eroding substantial capital from the public sector banks’ fraudulent approaches.