He desires to be a ‘poor-man’s Rajan’, and he is already the second man at RBI, which Rajan quit
Viral Acharya has been appointed Deputy Governor of the Reserve Bank of India. With a bright academic background, Acharya is believed to be an expert in finance. Forty-two-year old Acharya was working as a Professor of Economics in the Finance Department of New York University. He is known for his research in the field of risk analysis. In 1995, he got his degree in Computer Science and Engineering from IIT, Bombay. He did his PhD from Stern School of Business of New York University in 2001. He was teaching at London Business School from 2001 to 2008. Acharya was the member of Advisory Scientific Committee of European Systemic Risk Board. Along with this he has also been a member with Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE).
He confesses that he has been heavily influenced by former RBI governor Raghuram Rajan. Viral used to say that if he was even 5-10 per cent of what Raghuram Rajan is, he will be the ‘poor man’s Rajan’. Echoing Rajan’s thoughts, he is also in favour of independence in decision making for RBI. He believes that the bank regulator is an autonomous institution and hence it should be accountable for its decisions.
Experts feel that this appointment is an oddity, as Rajan quit because of clashes on these very ideals.
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