Beijing: Former Reserve Bank of India (RBI) Governor Urjit Patel has been appointed Vice Chairman of the Asian Infrastructure Investment Bank (AIIB), a Beijing-based multilateral finance institution, sources say from the bank Sunday.

India is a founding member of the AIIB with the second largest share of votes after China. It is headed by the former Chinese vice-minister of finance, Jin Liqun.

Patel, 58, will be one of AIIB’s five vice-presidents with a three-year term. He is expected to return to his post next month.

He will succeed outgoing vice-president DJ Pandian, who is in charge of the AIIB’s sovereign and non-sovereign loans in South Asia, the Pacific Islands and Southeast Asia, sources from the PTI told PTI. ‘AIIB.

Pandian, who previously served as Gujarat’s chief secretary, is expected to return to India later this month.

Patel succeeded Raghuram Rajan on September 5, 2016 as the 24th Governor of the Reserve Bank of India (RBI).

Patel resigned in December 2018 for personal reasons, stating: “I have decided to resign from my current position with immediate effect”.

Prior to taking office on September 6, 2016, he was deputy governor overseeing the RBI’s monetary policy department under Rajan and was known as his inflation warrior.

Patel has previously worked with the International Monetary Fund (IMF), the Boston Consulting Group, and Reliance Industries, among other organizations.

Patel’s allocation to the AIIB is seen as significant as India has become its primary beneficiary by securing $ 6.7 billion in funding for 28 projects, Pandian said during his farewell lunch on Saturday.

In addition, the AIIB and the Asian Development Bank (AfDB) are processing a $ 2 billion loan for India to purchase COVID-19 vaccines.

Of the $ 2 billion loan, the Manila-based ADB is expected to fund $ 1.5 billion and the AIIB plans to provide $ 500 million.

The AIIB recently provided a loan of $ 356.67 million for the extension of the Chennai metro rail system. It also plans to finance several other infrastructure projects for the development of the city of Chennai and its suburbs.

The bank also financed the Bengaluru metro rail project. In his farewell interaction, Pandian sought to dispel the impression, especially in India, that the AIIB is a Chinese bank.

He said the bank has now grown into a multilateral bank becoming the main financier of infrastructure projects in Asia.

With the exception of the United States and Japan, most developed and developing countries have joined the bank, he said.

A reading on the official AIIB website indicated that the bank is a multilateral development bank whose mission is to finance “the infrastructure of tomorrow” with sustainability at its heart.

We started our activities in Beijing in January 2016 and have since grown to 105 approved members around the world. We are capitalized at $ 100 billion and rated AAA by major international rating agencies, he added.