The curious case of the missing RBI governor
Advertisement
Governor of Reserve Bank of India (RBI), Urjit Patel, was last seen after Prime Minister Narendra Modi announced demonetisation. That was his first and last appearance, so far, after old Rs 500 and Rs 1000 notes were scrapped.
Since then, Economic Affairs SecretaryShantikanta Das has been addressing the news conference, updating people about the changes.
In this currency overhaul, Patel has been noticeably absent.
"Generally, measures of this sort are carefully planned well in advance, and the public is given plenty of time in advance to adjust. It is generally to be expected, and is typically the case, that the actual issuer of the currency, the central bank, plays the leading, if not the sole, role in these matters," Robert Hockett, who teaches monetary law at Cornell University and advises the New York Federal Reserve, told Bloomberg by e-mail.
The RBI's spokeswoman didn't reply to Bloomberg’s e-mail seeking comment on the central bank's involvement in the currency overhaul and Patel's absence.
"I was in charge of currency management and I saw that it doesn't serve the purpose. All I can say is the present governor is a very sensible person and he is very new. So I'll give him the benefit of doubt," K.C. Chakrabarty, who was deputy governor at the RBI from 2009 to 2014, told Bloomberg.
Modi had handpicked Patel, who was one of Raghuram Rajan's four deputies the past three years.
Perhaps the most important question is whether Patel will come under pressure if the government seeks to profit from the cash ban.
“It is a cabinet decision but, not for the first time, the government machinery is found lacking good communication skills to explain its policies, promptly, clearly and nationally. When such a big event like this is happening, one would definitely like to see and hear more from the central bank governor than we have so far," Manish Singh, chief investment officer at London-based Crossbridge Capital LLP, told Bloomberg.”
Advertisement
Since then, Economic Affairs Secretary
In this currency overhaul, Patel has been noticeably absent.
"Generally, measures of this sort are carefully planned well in advance, and the public is given plenty of time in advance to adjust. It is generally to be expected, and is typically the case, that the actual issuer of the currency, the central bank, plays the leading, if not the sole, role in these matters," Robert Hockett, who teaches monetary law at Cornell University and advises the New York Federal Reserve, told Bloomberg by e-mail.
The RBI's spokeswoman didn't reply to Bloomberg’s e-mail seeking comment on the central bank's involvement in the currency overhaul and Patel's absence.
"I was in charge of currency management and I saw that it doesn't serve the purpose. All I can say is the present governor is a very sensible person and he is very new. So I'll give him the benefit of doubt," K.C. Chakrabarty, who was deputy governor at the RBI from 2009 to 2014, told Bloomberg.
Advertisement
Modi had handpicked Patel, who was one of Raghuram Rajan's four deputies the past three years.
Perhaps the most important question is whether Patel will come under pressure if the government seeks to profit from the cash ban.
“It is a cabinet decision but, not for the first time, the government machinery is found lacking good communication skills to explain its policies, promptly, clearly and nationally. When such a big event like this is happening, one would definitely like to see and hear more from the central bank governor than we have so far," Manish Singh, chief investment officer at London-based Crossbridge Capital LLP, told Bloomberg.”
Advertisement
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market