Former Economic Affairs Secretary Shaktikanta Das Wednesday assumed charge as the RBI Governor.
He replaces Urjit Patel who abruptly resigned amid a face-off with the government over issues related to governance and autonomy of the central bank.
"Assumed charge as Governor, Reserve Bank of India. Thank you each and everyone for your good wishes," Das said in a tweet.Finance Minister Arun Jaitley termed Das as a person with "right credentials" for the RBI top job.
"Das has been a very senior and an experienced civil servant. He has almost his entire career in the management of finances and economic management of the country both, when he was in the state government of Tamil Nadu and also when he was in the Government of India in the Ministry of Finance," Jaitley said.
Das, who becomes 25th governor of the RBI, is a former IAS officer of Tamil Nadu cadre.
Jaitley said his appointment was necessitated by the resignation of Urjit Patel as Governor of the RBI on Monday.
"I think, he (Das) has the right credentials. He has been extremely professional, has worked under various governments and has excelled himself. I am sure, in meeting the challenges before India's economy as Governor of Reserve Bank, he will certainly act," the finance minister said.
Meanwhile, experts believe that the speed with which the government decided on the successor to the outgoing governor Urjit Patel is going to calm the markets, especially the forex markets.
"This will ensure continuity in monetary policy making and regulatory measures even as the global economy is passing through uncertain times. The financial markets will also significantly benefit from the appointment of new governor given his rich prior experience in fiscal policies and trade. This will also ensure a convergence of domestic and external policies, said Rajnish Kumar, chairman, State Bank of India.
The biggest bone of contention between former RBI governor Urjit Patel and the government was on the utilisation of the central bank’s excess reserves and relaxing some of the measures that RBI had set in to resolve the bad loans. A committee was to be set up to decide on the utilization of the reserves.