Author Topic: RBI to Get New Governor in September 2016  (Read 2242 times)

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Offline Bimat

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RBI to Get New Governor in September 2016
« Reply #15 on: August 20, 2016, 03:22:47 PM »
Debates have started with appointment of Urjit Patel as RBI Governor. He's president of Reliance Industries Limited and he was also non executive director of Gujarat State Petroleum Corporation, which is under scanner after CAG unearthed thousands of crores of scam in it.

It's rather true that there's a conflict of interest here. Can important appointments like this be challenged in the courts? (Just curious to know)

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Figleaf

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Re: RBI to Get New Governor in September 2016
« Reply #16 on: August 20, 2016, 04:48:24 PM »
The most important position is left out in that list: deputy governor, Reserve Bank of India. This position and Executive Director, Infrastructure Development Finance Company amount to his financial experience. The CV looks like that of a political darling, rather than an independent economic manager, but maybe he made a name for himself at RBI.

He has given up his position in Reliance in 2015, but he should be careful even with his social contacts to avoid any suspicion of conflict of interest. He should leave Boston Consulting right away. The other positions look like political appointments. They come and go easily.

If the inquest is into events that took place during his tenure, he's a risk. Otherwise, he cannot be held accountable. Keep in mind that a non-exec doesn't get to see everything and that it's a part-time job. However, it does come with responsibilities.

Peter
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Offline Bimat

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RBI to Get New Governor in September 2016
« Reply #17 on: August 21, 2016, 09:02:55 AM »
I fail to understand how and why was he appointed as deputy governor in 2013 by UPA (the then ruling party), as he was still president of Reliance Industries? This is ethically wrong!

One of the reason why Dr. Rajan was infamous among corporate world was that he initiated strict actions against loan defaulters. No other RBI governor has dared to do so in years. A risk I find with Patel's appointments in his past: Reliance and GSPC. He can still get away from Reliance, but the scam in GSPC will definitely haunt him!

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.