Modi government appoints Shaktikanta as New Governor Of Central Bank

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New Delhi: After the ‘controversial’ departure of Urjit Patel, Shaktikanta Das has been named as the next governor of the Reserve Bank of India.

Mr Das, who has previously worked on the board of the central bank and as finance secretary, will serve a three-year term.

He was closely associated with the withdrawal of high-value bank notes in 2016, which caused a cash shortage.

His appointment follows the abrupt departure of governor Urjit Patel on Monday.

Mr Patel blamed “personal reasons” for his resignation, but it’s thought he had come under increasing pressure from the government to support its polices.

It was a rare instance of a governor leaving his job midway through his term.

The government reportedly wanted the RBI to allow ailing state-owned banks, groaning under bad loans to industries, to resume lending to small businesses. It also wants the regulator to lower interest rates to inject much-needed liquidity into the economy.

Reports say the government also wants to access the RBI’s surplus reserves in a bid to stimulate the economy with a big public spending spree to woo voters before the elections.

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