 "Urjit Patel")
The government on Monday hoped that the Reserve Bank of India (RBI) governor-designate, Urjit Patel, would "rise to the occasion" and use his experience of handling monetary policy to maintain a balance between inflation and economic growth.
Patel, currently deputy governor at RBI, will take over the top job at the central bank when incumbent Raghuram Rajan demits office on September 4 after completing his term.
"He (Patel) will hopefully control inflation as he has experience with monetary policy," Minister of State for Finance Arjun Ram Meghwal told reporters here. "Patel's appointment is a right decision and in the interest of the country."
Economic Affairs Secretary Shaktikanta Das, who was said to be in fray for the top post at the apex bank, welcomed the appointment of Patel as the 24th RBI governor.
"With his background in monetary economics, monetary policies and his background in other fields, I am sure he will rise to the occasion and he will keep in mind the requirements of monetary policy and the inflation target that has now been laid out in the RBI Act," he said.
The government has set a Consumer Price Index-based inflation target of four per cent, plus or minus two per cent. Inflation had soared to 6.07 per cent in July.
RBI's next monetary policy review is scheduled on October 4.
Das said: "...he will also balance the requirement of growth, which is in fact the mandate as per the amended RBI Act."
Stating that the job of a RBI governor was not just making monetary policies, Das said the central bank head was also the regulator of banks and non-banking finance companies (NBFCs).
"In that role he has to ensure smooth functioning of the financial sector and he also has to look into the flow of credit to various sectors, in particular the requirement of agriculture and MSME (medium, small and micro enterprises) sectors," he said.
Minister of State for Finance Santosh Kumar Gangwar said he hoped that Patel would do well as the RBI governor. "I believe Patel will take the economy in the right direction. Even though he is less experienced, I think he will do the job well," he added.
BANKING ON PATEL
"He will hopefully control inflation as he has experience with monetary policy. Patel's appointment is a right decision and in the interest of the country."
- Minister of State for Finance Arjun Ram Meghwal
"With his background in monetary economics, monetary policies and his background in other fields, I am sure he will rise to the occasion and he will keep in mind the requirements of monetary policy and the inflation target that has now been laid out in the RBI Act"
- Economic Affairs Secretary Shaktikanta Das
"I believe Patel will take the economy in the right direction. Even though he is less experienced, I think he will do the job well"
- Minister of State for Finance Santosh Kumar Gangwar
