Shaktikanta Das appointed as the new RBI Governor

Patel, who was the Deputy Governor of the RBI before being elevated to the post of RBIGovernor, had succeeded Raghuram Rajan after the latter's term ended in September 2016

Shaktikanta Das, a member of the 15th Finance Commission and former Economic Affairs Secretary, was on Tuesday appointed as RBI Governor, a day after Urjit Patel quit abruptly. Das, an IAS officer of Tamil Nadu, will have a tenure of three years, according to a decision taken by the Appointments Committee of the Cabinet (ACC). He retired as Economic Affairs secretary last year and was subsequently made a member of the 15th Finance Commission.

At the recent G-20 meet in Argentina, Das was India's Sherpa. The post of RBI Governor fell vacant on Monday when Patel resigned, weeks after differences between the central bank and the government regarding its independence became public. Patel, 54, quit the post about nine months before his three-year term was to come to an end in September 2019.

Patel, who cited personal reasons for quitting the prestigious post, is the first RBI governor to resign since 1990. He stepped down just ahead of the scheduled meeting of the RBI Board meeting on December 14 to consider proposals like RBI governance and providing liquidity for Non-Banking Financial Companies (NBFCs).

On account of personal reasons, I have decided to step down from my current position, effective immediately, the 24th RBI Governor said in a statement. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years, he added.

Support & hard work of RBI staff, officers & management has been the proximate driver of Bank's considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues& Directors of RBI Central Board & wish them all the best for future, he said. Patel, who was the Deputy Governor of the RBI before being elevated to the post of RBIGovernor, had succeeded Raghuram Rajan after the latter's term ended in September 2016.

There was a lot of speculation weeks back about Patel resigning after the differences between the RBI and the government became public, with RBI Deputy Governor Viral Acharya saying there was a need to ensure RBI's independence. The speech, delivered by Acharya, was said to have the backing of Patel.

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