RBI chief Urjit Patel quits after spat with Modi government

The head of India’s central bank resigned on Monday following a public spat with Prime Minister Narendra Modi’s administration about alleged government interference. Reserve Bank of India governor Urjit Patel cited “personal reasons” for his decision, but media reports have said that he was annoyed by repeated government efforts to influence central bank policy. His term at the helm was due to end in September 2019. —

former RBI governor former finance minister of India mumbai — Reserve Bank of India governor Urjit Patel resigned for “personal reasons” on Monday, a decision analysts linked to intense pressure on the central bank from the government to ease regulatory curbs.

“On account of personal reasons, I have decided to step down from my current position effective immediately,” Patel said in a statement on the RBI website.

Analysts said the dispute between the RBI and the government could have been a major factor in Patel’s decision to resign.

“Quite clearly, the resignation of Urjit Patel shows that nothing has changed,” Yashwant Sinha, a former finance minister, said.

Former RBI governor Raghuram Rajan said: “We should go into the details on why there was an impasse which forced him to take this ultimate decision,” Rajan told ET Now, a TV channel.

Prime Minister Narendra Modi’s government has put pressure on the RBI to ease its regulatory curbs on some banks, increase liquidity and relax capital norms as it faces a slowing economy ahead of general elections due by May.

On account of personal reasons, I have decided to step down from my current position effective immediately Urjit Patel

We should go into the details on why there was an impasse which forced him to take this ultimate decision Raghuram Rajan,

Quite clearly, the resignation of Urjit Patel shows that nothing has changed

Yashwant Sinha,

The recent dispute between the RBI and the government could have been a major factor in Patel’s decision to resign