Michael Patra’s term to end: 10 things to know about the RBI deputy governor with a unique sense of humour | Mint

The tenure of Michael Patra, the Reserve Bank of India’s deputy governor, will end on Wednesday, January 15. Patra’s term, which would have originally ended around the same time in 2024, was extended by one year by the central government.

RBI deputy governor’s tenure to end

A deputy governor appointed by the Reserve Bank of India has a tenure of three years. However, Michael Patra, who is known for his humorous answers at the policy press meets, served for over three years, after the central government extended his tenure. Here’s all you need to know:

1. Michael Patra is a career central banker and was first appointed as deputy governor of the Reserve Bank of India in January 2020 for a three-year term.

2. Michael Patra played a pivotal role in steering India’s monetary policy and economic reforms. Known for his in-depth understanding of macroeconomics and central banking, Patra was one of the key figures in shaping the RBI’s response to the country’s economic challenges during his tenure.

3. From December 2008 to June 2012, Michael Patra worked at the International Monetary Fund (IMF) as Senior Adviser to the Executive Director for India. In this role, he contributed to global economic discussions, offering insights into India’s economic policy and global financial stability.

4. Before his appointment as Deputy Governor in 2015, Michael Patra served as the Principal Advisor of the Monetary Policy Department at the RBI, a position he held from July 2012, mentions the Indian Association for Research in National Income and Wealth.

5. Following the end of Michael Patra’s tenure on January 15, M Rajeshwar Rao would be in charge of the Monetary Policy Committee (MPC).

6. Michael Patra contributed to RBI’s communication strategy, helping the central bank become more transparent and proactive in engaging with the public on its policy decisions. His tenure saw enhanced interaction with financial markets and analysts, improving the credibility of the RBI’s policy stance, as per multiple reports.

7. Patra, the deputy governor known for his sense of humour, was a key member of the Urjit Patel Committee, which established India’s inflation-targeting framework and the committee-based approach to policy-making.

For instance, in 2022, to highlight the challenges faced by monetary policymakers while making a forecast based on historical economic data, Michael Patra had jokingly said: “If the National Statistics Office has the right to revise figures, if companies can change their earnings numbers, I should be allowed to change the interest rate in September (last policy).”

8. According to a report by Mint, experts believe that it may not be easy to replace Michael Patra, who had ensured a smooth transition from a governor-driven monetary policy to a panel-based process.

9. Michael Patra has been the only constant on the rate-setting panel, which has witnessed two RBI governors—Urjit Patel and Shaktikanta Das—and six external members during his tenure.

10. Although experts initially viewed Michael Patra as a hawk with a strict eye on inflation, the RBI deputy governor later softened his view when Shaktikanta Das was appointed the RBI governor.

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