Former bureaucrat Shaktikanta Das on Tuesday was appointed the new governor of the Reserve Bank of India, a government statement said. 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. The stock market regained composure towards the end of the session, with the Nifty closing 0.58% higher at 10,549 while the benchmark Sensex ended 0.54% firmer at 35,150. The rupee also pulled back to settle at 71.85 a dollar, after falling close to 72.50 in early trade. The rupee had closed at 71.34 on Monday.
