Former RBI Governor as AIIB Vice President

Urjit Patel, formerly the Governor of India’s Central Bank, has been named vice president for investment operations in South Asia, which is at the Asian Infrastructure Investment Bank (AIIB). He was appointed by replacing D J Pandian, a former Gujarat bureaucrat. Patel’s appointment took effect on February 1, according to a statement from the AIIB. D J Pandian was a Gujarat cadre IAS officer who retired years ago as one of the state’s top bureaucrats. He was the head of GSPC (Gujarat State Petroleum Corp)

Board of the AIIB

The Board of the AIIB has chosen Dr Urjit Patel, former governor of the Reserve Bank of India, to be the vice president for investment operations in Region 1 – South Asia, Pacific Islands and South-East Asia. Mr Patel is a lawyer, trained in the United States and based out of New York City. He has extensive legal experience across commodities markets, enforcement actions against banks, and large-scale financial fraud investigations. Mr Patel was the 24th governor of India’s Reserve Bank (RBI), succeeding Raghuram Rajan on September 5

The Asian Infrastructure Investment Bank (AIIB), founded in January 2016, is a multilateral development bank dedicated to delivering greater economic and social benefits across Asia. The institution currently has 104 members, including seventeen potential members worldwide. The president is followed by five vice presidents, one of which is Pandian’s old job and will be passed on to Patel.

Urjit Patel is also a member of the National Institute of Public Finance and Policy

Patel has also served as a Governing Body member of the National Institute of Public Finance and Policy in New Delhi, which is India’s leading think tank on fiscal policy and tax issues. He was the Executive Director and member of the Management Committee for Infrastructure Development Finance Company Ltd., a government-owned corporation. Patel started his career as an investment banker at Lazard in New York before joining the United Kingdom’s Department for Transport (DfT) in 2000 to oversee its £75m rural development fund. From 2002 to 2004, he was involved in the infrastructure and energy sectors at Citigroup. He earned a PhD from Yale University in economics. He was presented with the Wilbur Cross Medal from Yale University in 2019. His research papers and articles on the topics of public finance, global financial safety net, monetary policy, infrastructure, regulatory economics, climate change economics, and international trade theory have been well-received.

Experience

His experience in infrastructure development aided the AIIB in establishing end-to-end project identification and implementation, which was especially vital during our startup years.  Urjit Patel, former RBI governor has been named a vice president of the AIIB.

The Asian Investment and Development Fund was established in 2015

• The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank dedicated to financing infrastructure for the future, which includes long-term sustainability.
• The IMF has established a new cash pooling system in China. It began operating in January 2016 and, by the end of 2017, had expanded to 105 authorised members from around the world, representing over 79% of the global population and 65% of global GDP.
• China is the world’s largest AIIB investor, having contributed $100 billion in authorised capital.
• The Bank of Beijing is a commercial bank based in Beijing.
• Unlike most other multilateral development banks established by developed countries, the AIIB is the first major multilateral development bank to feature borrowing members as its main contributors.
• The Bank has a global presence, with headquarters in London, New York City, Toronto, and offices worldwide. Although most of its capital is from Asia, several non-Asian countries have joined, including Europe, North America, and certain East African and Latin American nations.
• AIIB helps businesses expand in emerging markets by assisting them in accessing new capital and investing in environmentally beneficial, technology-enabled infrastructure that promotes regional connectivity.
• In 2018, the AIIB was officially recognised as a Permanent Observer by the United Nations General Assembly and the Economic and Social Council, two of the world’s most important development-focused organs.
• India is a member of the Asian Infrastructure Investment Bank, founded with China’s support. Jin Liqun, a former Chinese finance minister, heads the organisation.

Conclusion

Urjit Patel’s vast experience at the national and international levels in both public and private sectors will assist the Bank in better embracing its expansion phase while also supporting AIIB’s goal of investing in infrastructure for tomorrow. Excluding the value of financing commitments made during his tenure, USD 24.9 billion in loans and lines of credit have been committed under his watch, with 14 members completed. During the previous six years, more than USD 17.8 billion in financings have been proposed by AIIB’s Board of Directors and approved by the Board.