I.G. Patel: Governor and Institution Builder

How I.G. Patel served as RBI Governor during the 1978 demonetisation, later became the first Indian director of the London School of Economics, and led IIM Ahmedabad.

I.G. Patel (1924-2005) was an economist and senior policymaker.

Public service

Chief Economic Adviser and Finance Secretary.
Deputy administrator at the UN Development Programme.

RBI Governor

Governor of the RBI from 1977 to 1982.
During his tenure, the government demonetised high-value notes of 1,000, 5,000 and 10,000 rupees in 1978 to fight black money; Patel reportedly doubted its effectiveness.

Academic leadership

Director of IIM Ahmedabad (1982-84).
Director of the London School of Economics (1984-90), the first Indian to hold the post.

Views

Patel supported liberalisation and warned about excessive controls.

Legacy

He bridged academia and policy, in India and abroad.

The 1978 notes

In 1978, holders of 1,000-rupee notes had to exchange them at banks within days, though few ordinary people held such large notes.

Thinking demonetisation first happened in 2016

High-value notes were demonetised in 1978 too.

Key takeaways

I.G. Patel was RBI Governor from 1977 to 1982.
High-value notes were demonetised in 1978.
He led IIM Ahmedabad and then the LSE.
He supported liberalisation.