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The sudden resignation of Urjit Patel as governor of the Reserve Bank of India, with immediate effect, opens up the question of who will take on the job.
The government has to nominate an official to take over in the interim, said a former central bank veteran. And thereafter, appoint a new governor.
The RBI Act, 1934 says:
This could also include an officer or employee of the bank, says the law.
While both the prime minister and finance minister have offered their best wishes to Patel, there is no intimation yet of who will step up to the job.
“The Centre always has a plan B in place,” said Pronob Sen, former chief statistician, in an interview to BloombergQuint.
There are four deputy governors in the RBI – NS Vishwanathan, Viral Acharya, BP Kanungo, MK Jain, and 12 executive directors.
(This article was first published on BloombergQuint.)
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