Former finance secretary Shaktikanta Das has been appointed the new governor of Reserve Bank of India.
The RBI had been rendered headless after Urjit Patel resigned on Monday, with immediate effect. Patel, who is the first governor since 1990 to step down before his term ended, in a brief statement, cited “personal reasons” for the decision. Patel’s three-year term was to end in September 2019.
Patel’s decision to quit comes days ahead of a crucial meeting of the board of the central bank that could have discussed issues of simmering differences with the government. It is expected that the board meeting of the RBI may be deferred.
Indian stock markets today recovered from sharp early losses triggered by the abrupt exit of Urjit Patel and electoral losses for the ruling BJP in state elections.