Viral V Acharya: Meet new RBI deputy governor who wants radical solutions to end India’s bad loan woes

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New Delhi | Updated: December 28, 2016 4:35:26 PM

The Government of India has appointed Viral V Acharya, an Economics professor at New York University, as one of the four deputy governors of RBI.

viral v acharya, viral acharya, rbi governor, reserve bank of india, rbi deputy governor, deputy governor of rbi, new rbi deputy governor, urjit paten, new rbi deputy governor, who is viral acharyaViral V Acharya, the new deputy governor of RBI. (Source: NYU)

The Government of India has appointed Viral V Acharya, an Economics professor at New York University, as one of the four deputy governors of the Reserve Bank of India (RBI). The deputy governor’s post was vacant since the Narendra Modi government elevated Urjit Patel to the post of RBI governor following the end of Raghuram Rajan’s term. A statement issued by the government did not mention which portfolio would be given to Acharya. Patel used to lead the monetary policy which is now headed by deputy governor R Gandhi.

In 2015, Acharya had published a research paper, along with Krishnamurthy V Subramanian of the Indian School of Business, which analysed the health of public sector banks of India. The public sector banks are reeling under the weight of around Rs 8 lakh crore bad loans even today. The paper recommended some radical measures to fix the bad loan problems of government banks in India, including their privatisation or relocation of their assets.

It is expected that Acharya would help India address the bad loan woes.  In an interview to BloombergQuint channel in October this year, Viral had suggested India should adopt a “bad bank” solution to prevent the bad loan problem in the country. In simple words, a “bad bank” is a bank specifically set up to buy bad loans of a bank that has a good amount of nonperforming assets at market price. By doing so, the banks can clear their balance sheets.

Watch Viral V Acharya Says India Needs Radical Solutions To End Bad Loan Woes

Here are a few things about the life and work of Acharya you would like to know:


Acharya comes with years of experience in teaching, researching and providing advice on economic matters to a number of reputed organisations in the world including India’s NSE and SEBI. At present, Acharya is the CV Starr Professor of Economics in the Department of Finance at New York University Stern School of Business (NYU‐Stern). He is the Program Director for Financial Economics and a Research Affiliate at the Center for Economic Policy Research (CEPR). Besides, Acharya is a director of Western Finance Association at the National Stock Exchange (NSE) of India.

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A short bio of Acharya on the NYU website says: Aacharya heads the NYU‐Stern Initiative on the Study of Indian Capital Markets and the International Growth Center (IGC) Finance Research Program.

He is a member of the Advisory Scientific Committee of European Systemic Risk Board (ESRB); Economic Advisory Committee of the Financial Industry Regulation Authority (FINRA); Advisory Committee of Financial Sector Legislative Reforms Commission (FSLRC) of India; International Advisory Board of the Securities and Exchange Board of India (SEBI); Advisory Council of the Bombay Stock Exchange (BSE) Training Institute, and Academic Research Council Member of the Center for Advanced Financial Research And Learning (CAFRAL, India).

Acharya is an Academic Advisor to the Federal Reserve Banks of Chicago, Cleveland, New York and Philadelphia,  the Board of Governors and the Bank of Canada.

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Viral completed Bachelor of Technology in Computer Science and Engineering from the Indian Institute of Technology, Mumbai in 1995 and went on to do a PhD in Finance at NYU‐Stern in 2001. Before joining Stern, he worked at the London Business between 2001‐2008. He was also a Senior Houblon‐Normal Research Fellow at the Bank of England in 2008.

Research interests

The research interest of the incoming deputy governor is “theoretical and empirical analysis of systemic risk of the financial sector.”


Viral has co‐edited books like Restoring Financial Stability: How to Repair a Failed System; Regulating Wall Street: The Dodd‐Frank Act and the New Architecture of Global Finance; Dodd‐Frank: One Year On.

He is also the co‐author of the book ‘Guaranteed to Fail: Fannie Mae, Freddie Mac and the Debacle of Mortgage Finance’ which was published by the Princeton University Press.

(Inputs from

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