ImF Executive Director Urjit PatelImage Credit Source: Indranil Bhoumik/Mint Via Getty Images
Urjit Patel, former Governor of the Reserve Bank of India, has been made Executive Director in the International Monetary Fund. The Central Government has appointed Dr. Urjit Patel, former Governor of the Reserve Bank of India (RBI), as Executive Director (ED) in the International Monetary Fund (IMF) for three years. Dr. Patel is the one who played an important role in creating inflation-torting framework in India’s monetary policy.
This appointment has been done at a time when the government issued an order on April 30 and suddenly abolished the tenure of India’s current ED Krishnamurthy V. Subramanian in IMF. His term was stopped about 6 months ago. Urjit Patel took over as the 24th Governor of RBI after Raghuram Rajan in 2016. In 2018, he became the first RBI Governor to resign for personal reasons and held the post for the lowest tenure since 1992.
Why is this appointment important?
This step has been taken at a time when India has often opposed the IMF bailout programs for Pakistan and expressed concern that Islamabad can use such money to promote war and border terrorism. Recently, the IMF Board had approved a loan of $ 1 billion to Pakistan under an existing multi-year program, including a total of $ 7 billion assistance. It has also approved a $ 1.4 billion loan limit for efforts to deal with climate change, which will be released in installments.
The news is being updated.