MPC Member Michael Patra to serve RBI as new Deputy Governor

Last Updated: Tue, Jan 14, 2020 16:51 hrs
Michael Patra

New Delhi/Mumbai: The Reserve bank on Tuesday confirmed the appointment of Micheal Patra, formerly an Executive Director to the post. According to a notification by the Appointments Committee of the Cabinet, Michael Debabrata Patra has been appointed for three years.

With this notification, the search for a replacement for former RBI deputy Governor Viral Acharya has been completed. Acharya who was one among the four Deputy Governors at the Central bank had resigned on July 23.

Dr Patra will take over as the current fourth Deputy Governor at the Reserve Bank of India. He is also likely to take over the monetary policy portfolio handled by Acharya. He will also be a part of the all important monetary Policy Committee that takes decisions on the rate of interest.

Dr Patra was one of the candidates who was interviewed by the Finance Ministry panel that included Banking and Finance Secretary Rajeev Kumar and he appeared to have steered post the Prime Ministers' office as well.

Dr Patra has been a career central banker who had joined the apex bank as early as 1985. He had previously for the DG post in 2017 and is considered as a rare individual to have had the experience of being in the central bank and getting elevated to the post of a Deputy Governor. His immediate two predecessors - Dr Urjit Patel and Dr Viral Acharya were outsiders before becoming Deputy Governors. Dr Patel was later elevated to the post of a Governor.

Michael Patra has been associated with the Monetary Policy Committee meetings, sharing his votes on benchmark repo rates. Since Governor Shaktikanta Das took office in December, Patra has voted for three successive rate cuts. Aside from monetary stimulus, he also says that the economy needs fiscal support and has broadly been in line with the consensus when rate cuts or status quo were maintained.

Dr Patra has been an Adviser-in-Charge of the Monetary Policy Department with the Reserve Bank of India since March 2006. Before moving to the Monetary Policy Department in October 2005, he was an Adviser with the Department of Economic Analysis and Policy in charge of international finance, money and banking. He has served in various capacities in the Reserve Bank of India which he joined in 1985. He is a Fellow of the Harvard University where he undertook post doctoral research in the area of financial stability. He has a Ph.D. in Economics from the Indian Institute of Technology, Mumbai. His Ph.D. thesis was entitled "The Role of Invisibles in India’s Balance of Payments: A Structural Approach".

He has received professional training at the IMF Institute on Financial Programming and Policy and at the Centre for Central Banking Studies, Bank of England.

Similar to Governor Shaktikanta Das, Dr Patra also hails from Odisha.