Urjit Patel lived a life of silence for years, keeping away from the spotlight even as the decisions he took greatly impacted India’s financial system. When he left the Reserve Bank of India (RBI) in December 2018, his resignation stunned the corridors of power and financial markets alike.Rarely had a central banker clashed so openly with the political establishment and then chosen to step aside rather than bend.After almost eight years in the wilderness, Patel, 61, is back. He has resurfaced in the international arena as Executive Director at the International Monetary Fund (IMF). The appointment marks not only a continuation of his career but a symbolic “return”, a reminder that the reclusive economist continues to command respect in India and on the global stage.To understand Urjit Patel’s journey, one must examine his personality, his term at the RBI, the bitter feud with the government that forced his exit, and his re-entry into the world of policy through the IMF.The reclusive economistPatel, born in Nairobi, Kenya, is not a man who seeks crowds or publicity. Unlike many economists who delight in public debates, Patel has always been an intensely private individual.Colleagues describe him as reserved, sometimes bordering on aloof. He speaks sparingly, weighing each word, and avoids unnecessary public interactions. This reclusive nature was not just a personality trait — it also shaped his professional style.Patel built his reputation in the world of economics through rigorous research and policy work rather than grandstanding. He was armed with an MPhil from Oxford and a PhD from Yale University, and his analytical mind was exceptionally sharp, but he never displayed the flamboyance that often accompanies those with celebrated academic pedigrees.Story continues below this adPatel’s preference was to work behind the scenes, drafting frameworks, examining macroeconomic imbalances, and letting his work speak for itself. This introverted, almost enigmatic persona would later become a defining feature of his time at the RBI. For his admirers, Patel’s silence was a mark of the dignity with which he carried himself; to his critics, it appeared as a sign of weakness.Patel’s association with policymaking in India has been long and deep, rooted in institutions that shaped the country’s economic trajectory.More than three decades ago, when India was compelled to seek an IMF loan to rescue itself from a crippling balance of payments crisis, Patel, fresh out of university and newly inducted into the IMF, was already in the thick of action.Stationed at New Delhi with the IMF Mission for India, he worked closely with the Mission Leader between 1991 and 1994, overseeing and scrutinising the milestones that the government was forced to achieve as part of its reform-linked commitments.Story continues below this adThis marked the beginning of his engagement with India’s reform story.That institutional involvement broadened with time. In 1997, when the government promoted the Infrastructure Development Finance Company (IDFC) as a new vehicle to accelerate infrastructure creation, Patel moved there, playing a crucial role in framing policies for emerging sectors such as telecom, power, and roads.Even before his formal appointment as Deputy Governor of the Reserve Bank of India in 2013, Patel had seen the workings of the central bank from the inside. During the tenure of Governor C Rangarajan between 1992 and 1997, Patel was inducted as an Officer on Special Duty (OSD) — this was a time when the RBI was actively examining reforms in financial markets and grappling with the evolving contours of foreign exchange management.Tenure as RBI GovernorWhen Patel became the 24th Governor of the Reserve Bank of India after the departure of Raghuram Rajan from the Mint House headquarters in September 2016, expectations were mixed.Story continues below this adRajan had dominated headlines with his articulate warnings on the economy and fearless stance on crony capitalism and bad loans. Patel, in contrast, preferred anonymity. But his arrival coincided with one of the most tumultuous episodes in Indian economic history — Prime Minister Narendra Modi’s surprise demonetisation announcement in November 2016.Patel became the face of the RBI during demonetisation, a storm that tested the central bank’s credibility. Questions were raised about the RBI’s preparedness, the logistical nightmare of replacing old currency notes, and the impact on growth. Patel remained largely silent in public, avoiding detailed explanations.Critics accused him of failing to defend the RBI’s independence and abandoning citizens to confusion. Supporters, however, argued that his quietness reflected prudence, and his refusal to politicise the institution by indulging in public spats.Beyond demonetisation, Patel’s tenure focused on tightening the inflation-targeting framework. He strengthened the Monetary Policy Committee (MPC), reinforcing RBI’s role in maintaining price stability. His stance on maintaining fiscal discipline and cleaning up the balance sheets of banks earned him both admiration and hostility.Story continues below this adBy pressing for recognition of bad loans and resisting attempts to dilute banking regulations, Patel positioned himself as a guardian of stability. His actions after demonetisation showed that he stood for the independence of the RBI and refused to toe the line of the central government.Feud with government and exitProblems arose not from the markets but from power corridors of New Delhi. Patel’s relationship with the government soured over multiple issues — banking regulation, transfer of surplus reserves, the bankruptcy code, and autonomy of the RBI.In his book Overdraft: Saving the Indian Saver (2020), Patel strongly criticised the government for diluting the Insolvency and Bankruptcy Code (IBC) and the powers of the central bank, saying this undermined efforts made since 2014 to clean up the bad loan mess.His argument was that the government used “ownership of banks as a means for day-to-day macroeconomic management” rather than primarily for efficient intermediation between savers and borrowers.Story continues below this adThe regulator’s de facto powers were diluted on several subjects related to preserving financial stability, Patel wrote. “Circulars were reversed and the PCA (prompt corrective action) framework essentially ditched as these came in the way of stimulating the economy through higher credit growth,” he said in the book.When the Narendra Modi government, keen to stimulate growth before the 2019 Lok Sabha election, pushed for looser regulation and greater dividend payouts from the RBI to finance expenditure, Patel resisted. He argued that the central bank’s independence was sacrosanct and its balance sheet was not a piggy bank for short-term populism.As the feud intensified in 2018, the government invoked an obscure clause of the RBI Act to pressure Patel, an unprecedented move that signalled open confrontation. Behind closed doors, meetings between the Finance Ministry and RBI turned acrimonious. Patel, reserved by nature, withdrew further into silence, refusing to yield. His deputies, especially then Deputy Governor Viral Acharya, spoke out more openly, but the Governor himself chose to remain stoic.In December 2018, Patel resigned. He cited “personal reasons”, but the timing made it clear that this was no ordinary departure. It was a principled exit, a refusal to compromise the RBI’s institutional autonomy. Commentators saw Patel’s exit as a watershed moment in the government’s uneasy relationship with regulators. The Governor left without fanfare, and disappeared from the limelight.Role as ED of IMFStory continues below this adYears later, Patel’s quiet re-emergence at the IMF signals a global acknowledgment of his expertise. As Executive Director, Patel will represent India at one of the most influential financial institutions in the world.The IMF deals with macroeconomic stability, global capital flows, debt crises, and structural reforms – precisely the areas where Patel’s analytical expertise shines. Currently, India’s ED represents India, Bangladesh, Bhutan and Sri Lanka at the IMF Executive Board. The ED speaks and votes on behalf of India and its constituency members.The ED ensures that IMF policy prescriptions do not adversely impact India’s economic sovereignty. The ED also defends India’s stance on key issues such as capital controls, subsidy policies, and financial regulations. The role involves engaging with other member nations, shaping discussions on fiscal sustainability, and presenting India’s perspective in global economic debates.For Patel, who stays away from noise and prefers depth, the IMF offers the perfect stage — serious work with global consequences, away from domestic political squabbles. Instead, he will now serve as a bridge between the IMF and New Delhi.Why the government selected himStory continues below this adPatel’s presence at the IMF underscores the value of both substance and resilience. For India, his return signifies acknowledgment that institutions and individuals rooted in integrity ultimately find their place — even if it takes time. It is not lost on anyone that his appointment to the IMF has been facilitated by the same government with which he locked horns.After leaving the RBI, Patel chose to channel his energies into academic work and policy research, with a sharp focus on India’s financial sector and energy economics. His association with the National Institute of Public Finance and Policy (NIPFP) as chairman reinforced his reputation as a rigorous and credible policy intellectual.When the position of Executive Director at the IMF became vacant after the sudden exit of Krishnamurthy Subramanian — his tenure was terminated by the government in April 2025 — the government had to nominate a candidate. Patel’s credentials outweighed any political grudges that may have still existed.Few economists combine his international education, central banking experience, and deep knowledge of India’s structural challenges. By selecting Patel, the government has signalled pragmatism — that India’s representation at the IMF requires competence over personal disagreements.This appointment also serves India’s image abroad. Having a former RBI Governor who stood firm on institutional independence representing India lends credibility to New Delhi’s claim of professionalism in policymaking. Both the government and India are ultimately winners.