The 'owl' on a new perch

THE FORMER RBI GOVERNOR WAS WIDELY COMMENDED FOR HIS MEASURED HANDLING OF THE LIQUIDITY SHOCK, HIS PUSH FOR PROMPT CORRECTIVE ACTION FRAMEWORK, AND HIS FIRM STANCE ON CENTRAL BANK AUTONOMY

- MAHESH NAYAK

MOST ACCOUNTS OF Urjit Patel, who has just been appointed executive director at the International Monetary Fund, has described him as a well-respected but "low-key" figure — basically, a man of few words. But when he spoke, it was with great effect. The former Reserve Bank of India governor once famously characterised the central bank as an owl and not a hawk or a dove.

There are other examples, too. When the massive bank fraud involving Punjab National Bank came to light in 2018, Patel had said that like the "Neelakantha", the RBI will consume poison and face brickbats, but will persist with endeavours to become better with each trial.

Patel was to resign at the fag end of that same year — the first RBI governor since 1990 to resign before the completion of his term — citing a terse "personal reasons" amid public disagreements with the government over issues such as surplus fund transfer from the RBI's reserves and regulatory oversight of public sector banks.