Continuity signal for Mint Road

Continuity signal for Mint Road: Urjit Patel, who proposed inflation-targeting and monetary policy committee, gets three-year term as RBI's 24th governor...

Continuity @ Mint Road

The extensive coverage by Sunday Business Standard(August 21) of the ‘change of guard’ at Reserve Bank of India deserves special praise from RBI-watchers. The decision to appoint Urjit Patel as 24th RBI Governor will be welcomed by all including the outgoing Governor Dr Raghuram Rajan, who was visibly concerned during recent weeks, about unfinished work he would be leaving for his successor. As Patel was associated with most of the policy pushes Rajan initiated, there is no immediate risk of a diversion under pressure from any quarters.
Though 3 years is too short a period, the history of RBI for the current period, when it is written, will have a lot to cover under ‘Rajan Era’. Here, there is an advantage arising from Dr Rajan’s innocence and outspokenness (which, in a way cut short his stay at Mint Road!) for those who will be recording the history. They do not have to wait for Rajan to write his memoirs. They can as well scan the speeches made and interviews given by him during the three years.
One regret. GOI has again gone by a wrong template while appointing RBI Governor. The appointment this time should have been for 5 years’ tenure in the first place. Of course, it would be tough to ignore political pressures at every stage.
In a lighter vein, one is tempted to console Subramanian Swamy that his accusation that Dr Rajan did not study economics at undergraduate level has been taken into account in making a choice, as Urjit Patel went for higher studies after graduation in economics!

G Warrier, Mumbai


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