The newly appointed 24TH RBI governor Urjit Patel has to face more dynamic situation than his predecessor Raghuram Rajan.

The bureaucratic tribe or the serving tribe to the government and its institution are supposed to be yes boys. Their reply to the political bosses must be in affirmative mode, at least it must sound affirmative. Reply in no to the political boss means closing your own way ahead. So an incumbent official to the institution are not only supposed to work with positive attitude and passion, they are also supposed to reply in positive nod.

Officials are always at their toe when it comes to draft the business rule which directly acknowledge the view of political executive i.e. the (Government). In this regard they, the officials, are in dilemma throughout their tenure of service, and when it comes to governor of RBI it becomes much complicated. Beside maintaining the sovereignty of respective institution and chair which the RBI governor holds, they also have to uphold the economic promises made by the government. Though the entire economic activity is the collective business of duos (RBI & Government) but both are contrary to each other in their dealings. In one hand government has to appease the spontaneous outburst of public, coming out of inflation or some other economic crisis but in other hand RBI being the custodian of economy always looks upon long term economic stability as its prime business.

rbi governor raghuram rajan l No, Not To You

The newly appointed 24TH RBI governor Urjit Patel has to face more dynamic situation than his predecessor Raghuram Rajan. When Raghuram Rajan came in office his prime target was to bring down the inflation rate and to provide economic stability, despite all odds in which he succeeded to greater extent in a time bound period. Rajan is only second governor after 1990 to hold office for just three years. Though there in nothing new in it in a multi party political system. But the certain bench mark which Rajan sat in his working style will definitely create issue. He throughout his tenure has been known for working without any pressure and political consideration, from time to time we have seen visionary conflict between him and government and he always remains firm to his attitude at least in public gaze.

urjit patel No, Not To You

Politically the incumbent government was in its early days during Rajan’s tenure so it was in position to negotiate with certain pro public and pro industrialist approach but with the new governor, the government of the day has to face next Loksabha election i.e. government has to show its report card to the common people who have not much to do with foreign policy and economic relation with SAARC, ASEAN and so on. Common people only acknowledge the development which they observe at ground and next time they will not vote for Gujarat model of development, they will vote for their indigenous development.

gst tax No, Not To You

Government too has changed its step, now it play deciding role among RBI think tank which was not so during Rajan’s period. Passing of GST proved big success for government but its implementation from next financial year would be a greater question as the experiences globally shows the gestation period of GST is long and in beginning it shows rise in inflation rate and by that time next general election will be in hand too. Obviously the government too is aware of fact but the upcoming time for new RBI governor is not as rosy as it seems. Will Urjit Patel say no to government at policy end and succeed in maintaining sovereignty which Rajan dare to say and maintained. Because any downfall in economy will not only question government policy but also question Patel’s appointment, it is mainly because of manner in which Rajan left the office and personal criticism of him by top brass of BJP though PM himself take cognizance of it but it was little bit late and damage has already been done.

By Diwakar Jha

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