Urjit Patel takes charge as RBI deputy governor, gets 3-year term

Succeeds Subir Gokarn whose term ended on Dec 31

Urjit Patel (49) today took charge as the deputy governor of the Reserve Bank of India. Patel has been handed a three year term, till January, 2016, RBI said in a press release. Patel succeeds Subir Gokarn whose term ended on 31 December. A deputy governor in RBI can be appointed for a maximum of 5 years or till the age of 62, which ever is earlier.

Though the central bank is yet to announce Patel’s portfolio but he is widely expected to handle the all important monetary policy department – a portfolio which was looked after by Gokarn. RBI is expected to allocate his portfolios by the end of the day.

RBI has four deputy governors. The other deputy governors are K C Chakrabarty, Anand Sinha and H R Khan.

Patel’s immediate task will be to offer his views in framing the monetary policy stance for the third quarter policy review which will be announced on 29 January. RBI is widely expected to cut interest rates for the first time since April 2012 to revive growth.

Prior to his appointment as the Deputy Governor of the Reserve Bank, Dr. Patel was Advisor (Energy & Infrastructure), The Boston Consulting Group.

During 1996-97, Patel was on deputation from the IMF to the RBI and provided advice on development of the debt market, banking sector reforms, pension fund reforms, real exchange rate targeting and evolution of the foreign exchange market. He was a Consultant (1998-2001) to the Ministry of Finance, Department of Economic Affairs, New Delhi.

Patel has also spent significant time in the Indian corporate sector as he was the President (Business Development) of Reliance Industries, and executive director and of Infrastructure Development Finance Company (IDFC).