Urjit Patel
Urjit Patel | |
|---|---|
| Born | October 28, 1963 Nairobi, Kenya |
| Occupation | Economist |
| Years active | 1990–present |
| Known for | 24th Governor of the Reserve Bank of India, Deputy Governor of the Reserve Bank of India |
Urjit Patel (born 28 October 1963) is an Indian economist of Kenyan origin who held the position of the 24th Governor of the Reserve Bank of India and previously served as its Deputy Governor. In these roles, he was responsible for overseeing monetary policy, economic research, financial markets, statistical analysis, and information management. On 10 December 2018, Patel resigned, marking the first instance of an RBI governor stepping down due to personal reasons.
At present, he leads the National Institute of Public Finance and Policy as its chairman and serves on the boards of Britannia Industries and John Cockerill India.
Early life and education
Urjit Patel was born in Nairobi to parents Manjula and Ravindra Patel. His family originally migrated from Mahudha, Gujarat to Kenya during the 20th century. His father was the manager of Rexo Products Ltd, a chemical manufacturing company based in Nairobi.
Patel completed his schooling at Jamhuri High School and Visa Oshwal Primary School in Nairobi. He obtained a BSc degree from the London School of Economics in 1984, followed by an M.Phil. from Oxford University in 1986. He earned his doctorate in economics from Yale University in 1990. During India's economic transition from 1991 to 1994, he worked at the IMF India Desk.
Professional career
Following his Ph.D., Patel joined the International Monetary Fund (IMF) in 1990 where he worked on assignments related to the US, India, Bahamas, and Myanmar until 1995. Subsequently, he was seconded to the Reserve Bank of India (RBI), providing guidance on reforms involving debt markets, banking, pension funds, and real exchange rate targeting.
Between 2000 and 2004, Patel played an active role in multiple High-Level Committees formed by Central and State Governments, including:
- Task Force on Direct Taxes
- Prime Minister's Task Force on Infrastructure
- Group of Ministers on Telecom Matters
- Committee on Civil Aviation Reforms
- Expert Group on State Electricity Boards
- High-Level Expert Group on Civil and Defence Services Pension System
- Competition Commission of India
Originally a Kenyan-born individual from a Gujarati background, Patel acquired Indian citizenship in 2013 prior to joining RBI. On 11 January 2013, he assumed office as Deputy Governor for a three-year term which was extended in January 2016.
Patel was appointed Governor of the Reserve Bank of India on 20 August 2016. During his governorship, the Indian government undertook demonetisation of ₹500 and ₹1000 currency notes starting from 9 November 2016 to combat corruption, black money hoarding, counterfeit currency circulation, and terrorism financing.
He tendered his resignation as RBI Governor effective immediately on 10 December 2018.
In June 2022, Patel took up the role of Vice President for investment operations at the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB), a prominent multilateral development institution.
Controversies
Although Patel officially cited personal reasons for his resignation from RBI, analysts believe his departure was compelled by significant disagreements with the Government of India. The government had requested additional financial support from RBI to manage its fiscal deficit; however, Patel resisted this pressure emphasizing the importance of maintaining long-term financial stability.
The government also viewed RBI’s tight monetary policies as restrictive to credit expansion which could dampen future economic growth prospects. While Chief Economic Advisor Arvind Subramanian recognized RBI’s position, he recommended easing monetary policy to stimulate growth.
Patel was often seen as isolated due to limited engagement with stakeholders and perceived inadequate responsiveness to evolving market conditions.
In August 2019, Nitin Gadkari further fueled speculation by revealing that he had advised the Finance Minister to remove Patel citing inflexibility as a concern.
Despite these tensions, both Prime Minister Narendra Modi and Finance Minister Arun Jaitley acknowledged and lauded Patel’s contributions upon his exit.
Significant Roles
- Nonresident Senior Fellow at the Brookings Institution, Washington D.C. (2009–2012)
- Consultant, Boston Consulting Group
- President of Business Development at Reliance Industries (2007–2011)
- Executive Director at Infrastructure Development Finance Company (1997–2006)
- Member of the Integrated Energy Policy Committee under the Government of India (2004–2006)
- Non-Executive Director at Gujarat State Petroleum Corporation
- Non-Executive Director at Multi Commodity Exchange of India Limited
- Deputy Governor of the Reserve Bank of India (2013–2016)
- Governor of the Reserve Bank of India (2016–2018)
Honors and Awards
- Awarded the Wilbur Cross Medal by Yale University in October 2019, acknowledging his role as the twenty-fourth Governor of the Reserve Bank of India and his notable impact on public service and academic pursuits.
- Named Honorary Fellow at Linacre College, University of Oxford, in 2019.