Here are a few challenges that Urjit Patel will have to deal with once he takes up the mantle as the new RBI Governor 1) Redemption of FCNR (B) deposits The Reserve Bank of India (RBI) raised about $35 billion through these deposits in September-Novembe 2013. Most of the deposits are getting due this year and the central bank has guided that the resultant dollar outflow (about $20 billion) could create temporary liquidity crisis in the market.

Outgoing governor Raghuram Rajan though, has guided that it should not be a challenge if managed well. Nevertheless, for the new ...