For Patel, this is a re-entry into RBI. Between 1995 and 1997, he had worked as an adviser with the bank on banking sector reforms, debt market, pension fund reforms, real exchange rate targeting and the development of the foreign exchange market. He had also worked as an adviser in the finance ministry during 1998-2001. In his new job, Patel’s experiences with RBI and the finance ministry are likely to be an asset. His appointment comes at a time when RBI and the finance ministry are having deep disagreements on rate cuts. Though the government has been urging RBI to cut the interest rates, RBI has steadfastly refused to do so. It has kept the repo rate at 8 per cent since April 2011. RBI’s doggedness comes despite Finance Minister P Chidambaram announcing a revised fiscal consolidation road map to show the government’s committment to prune the gap between the Centre’s expenditure and receipts.................
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