RBI guv Patel calls on FM

The new Reserve bank of India governor, Urjit R Patel, who took over from Raghuram Rajan on Monday, met finance minister Arun Jaitley on Thursday.

The new Reserve bank of India governor, Urjit R Patel, who took over from Raghuram Rajan on Monday, met finance minister Arun Jaitley on Thursday.

RBI governor Urjit Patel poses with NITI Aayog chairman Arvind Panagariya (right) in the latter’s office in New Delhi on Wednesday. Patel called on finance minister Arun Jaitley on Thursday. (PTI)

Sources said that it was a “customary” meeting and the two discussed the economic situation of the country.

“It was a courtesy call…this is a normal thing considering Patel took over as governor only this week,” a government official said.

This was Patel’s first meeting with Jaitley after assuming charge of the central bank.

Patel, known to be a “silent doer” said that October 4 — the next monetary policy review — is “when we will talk.”

Sources said the government is in the process of appointing its three nominees for the Monetary Policy Committee (MPC), which Patel had authored. The committee, which will have six members, will be responsible for determining the interest rate and ensuring that inflation remains within the set target of 4% for the next five years with a margin of 2%.