CII confident Urjit Patel will lead RBI to new heights

The Confederation of Indian Industry (CII) on Saturday welcomed the government's decision to appoint Urjit Patel as the next Governor of the Reserve Bank of India (RBI) and exuded confidence that he would lead the central bank to new heights.

"We have had the opportunity to work with Dr Patel in his earlier roles. The CII is confident that the new governor will lead the central bank and take its developmental and regulatory agenda to new heights", said Chandrajit Banerjee, Director General, CII.

"As in the past, CII is committed to work closely with the government and the RBI to support the creation of a stable, low inflation and high growth economy. We congratulate Dr Patel on his appointment and wish him all the very best for his new role, he added.

Patel, who is currently serving as the Deputy RBI chief, will succeed Raghuram Rajan as the RBI chair once he steps down on September 3 after his term comes to an end. Patel will be India's 24th RBI Governor.

"The Appointments Committee of Cabinet (ACC) has approved the appointment of Dr. Urjit Patel as Governor, Reserve Bank of India (RBI) for a period of three years w.e.f. 4-9-16," the press statement issued from the finance ministry said.

"The appointment has been made based on the recommendation of the Financial Sector Regulatory Appointments (FSRASC) headed by Cabinet Secretary," the statement added.

The committee undertook an extensive exercise to suggest a panel of names to the ACC. One of the RBI's four deputy governors, Patel, 52, was reappointed in January for another three years. He has run the central bank's monetary policy department since 2013.

Patel obtained his BA from the London School of Economics [LSE, University of London], M. Phil. degree from Oxford University in 1986. He received his doctorate in Economics from Yale University in 1990. He joined IMF as a Kenyan citizen.

He was at IMF India desk during the 1991-1994 transition period. He was posted to IMF country mission in India 1992-1995. He has also been a non-resident Senior Fellow at the Brookings Institution since 2009

Dr Rajan's term ends on September fourth, after he surprised everyone with a letter to RBI staff announcing his decision to return to academics and not be available for a second term.