NEW DELHI: The Narendra Modi government on Saturday signalled continuity by naming Raghuram Rajan's key deputy, Urjit Patel, as the 24th governor of the Reserve Bank of India (RBI).
"Apart from continuity , what worked in Patel's favour is his knowledge of monetary policy. Plus, he is in sync with the government's growth aspiration," a person close to the development told TOI .
The announcement through a press note marks an end to weeks of fevered speculation over the replacement for Rajan, who will return to academia in the US once his term ends on September 4, bringing the curtain down on an increasingly rocky relationship with the Centre. The government unveiled the appointment on a day markets were closed, just as Rajan did in June to announce his decision not to seek a second term.
Patel--who has been given a three-year tenure--was selected from a field of five contenders with his predecessor, Subir Gokarn, being the other strong candidate. Also in the fray were chief economic adviser Arvind Subramanian, economic affairs secretary Shaktikanta Das and former World Bank chief economist Kaushik Basu,TOI was told by people with knowledge of the deliberations. Rakesh Mohan, another former RBI deputy governor, was on the original shortlist as well but opted out citing other commitments.
"Apart from continuity , what worked in Patel's favour is his knowledge of monetary policy. Plus, he is in sync with the government's growth aspiration," a person close to the development told TOI .
The announcement through a press note marks an end to weeks of fevered speculation over the replacement for Rajan, who will return to academia in the US once his term ends on September 4, bringing the curtain down on an increasingly rocky relationship with the Centre. The government unveiled the appointment on a day markets were closed, just as Rajan did in June to announce his decision not to seek a second term.
Patel--who has been given a three-year tenure--was selected from a field of five contenders with his predecessor, Subir Gokarn, being the other strong candidate. Also in the fray were chief economic adviser Arvind Subramanian, economic affairs secretary Shaktikanta Das and former World Bank chief economist Kaushik Basu,TOI was told by people with knowledge of the deliberations. Rakesh Mohan, another former RBI deputy governor, was on the original shortlist as well but opted out citing other commitments.
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