On Tuesday, the government appointed Michael Patra as the new deputy governor of Reserved Bank of India (RBI). Michael Patra, who is currently the Executive Director at the Central Bank of India (CBI) and in charge of the research department of RBI has a place on the six-member Monetary Policy Committee(MPC).
Patra was considered a monetary policy hawk until 2018 and had basically done doctorate in Economics from one of the best institutions in India - Indian Institute of Technology (IIT). Now, he has been appointed as the deputy RBI governor for over a period of 3 years from the date of appointment until any further orders, states a circular released by the Appointment Committee of the Cabinet. Patra comes nearly six months’ after the former deputy governor Viral Acharya’s pre-mature resignation.
Acharya had quoted unavoidable personal reasons for his resignation, but it was widely speculated that he resigned due to RBI’s spat with the government over various issues. In Acharya’s speech on ‘Ongoing Challenges in Maintaining Independence of the Reserve Bank of India’ in October 2018, he had strongly criticized the government’s interference in the functioning of RBI and therefore, his exit was extensively expected. Soon after Acharya’s speech, the governor Urjit Patel had resigned in December 2018, in the middle of conflicts with the Centre. Patel’s exit triggered fresh concerns over issues between the government and the RBI.
But now finally, Government welcomes Michael Patra as the new Deputy governor of Reserved Bank of India (RBI).
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