Urjit Patel Appointed as ED at IMF

• 01 Sep 2025

Why in News?

The Government of India has approved the appointment of former Reserve Bank of India (RBI) Governor Urjit Patel as the Executive Director (ED) at the International Monetary Fund (IMF). 

• He will be representing India, which is part of a four-country constituency along with Bangladesh, Sri Lanka, and Bhutan.
• The Executive Board of the IMF consists of 25 directors, who are elected by the member countries or groups of countries. 

Key Points

• About: The Appointments Committee of the Cabinet approved his appointment for a term of three years from the date of assuming charge or until further orders, whichever is earlier.
  • He will replace K.V. Subramanian, former Chief Economic Advisor, whose term was cut short by six months amid allegations of impropriety. 
• Role: As an Executive Director at the IMF, he will:
  • Be part of the Executive Board, which discusses and influences global and regional economic policies, national economic policies, and the Fund’s capacity development efforts.
  • Help approve financing packages to support member countries in addressing temporary balance of payments issues.
  • Play a key role in overseeing the IMF’s support to countries’ economic reforms and initiatives.

Background of Urjit Patel:

• About: Urjit Patel served as the 24th Governor of the RBI from 2016 to 2018, succeeding Raghuram Rajan, after previously holding the position of Deputy Governor, where he oversaw key areas like monetary policy, economic research, and deposit insurance.
  • After resigning from the RBI, Patel served as Vice President for Investment Operations at the Asian Infrastructure Investment Bank (AIIB), based in Beijing, until his resignation in January 2024 due to family health reasons.
  • He has been the Chairman of the National Institute of Public Finance and Policy (NIPFP) since June 2020.
• Reforms at RBI:
  • Under his leadership, the RBI introduced significant reforms in monetary policy, including the Monetary Policy Committee (MPC) formed in October 2016 to decide on interest rates.
  • Flexible Inflation Targeting: The RBI adopted a flexible inflation targeting framework recommended in January 2014, with Patel playing a key role as Deputy Governor.