BUSINESS
11/12/2018 6:36 PM IST | Updated 11/12/2018 7:47 PM IST

Shaktikanta Das Appointed New RBI Governor

Shaktikanta Das was former economic affairs secretary at the Finance Ministry.

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Shaktikanta Das, former economic affairs secretary at the Finance Ministry

The government appointed former economic affairs secretary Shaktikanta Das as the next RBI Governor on Tuesday, Reuters reported. Das, currently a member of the finance commission, replaced Urjit Patel who resigned abruptly on Monday.

Das has been appointed governor for a period of three years. He had retired as the economic affairs secretary in May 2017.

Das was tasked with defending the Narendra Modi government's most controversial financial reforms—demonetisation and GST—during his tenure.

Urjit Patel stepped down as RBI chief on Monday. In a statement, he said that he decided to step down from his position on account of "personal reasons".

Patel's resignation came after a month-long tussle over policy with the government that has raised concerns about the central bank's independence as a national election nears.

Read: Urjit Patel's Resignation A Matter Of Concern For All Indians, Says Raghuram Rajan

The government has been putting pressure on the RBI to ease lending curbs and capital requirements, and gain more of the RBI's capital reserves to help fund a fiscal deficit and boost a slowing economy.

The central bank, which is due to hold a policy meeting on 14 December, has been reluctant to agree to all of the demands.

On Tuesday, NITI Aayog vice chairman Rajiv Kumar played down Patel's resignation, saying the government would do whatever is required to ensure stability.

"It is not as if the RBI is dependent on any particular individual," said Kumar, adding India's institutional capabilities are very strong.