Urjit Patel resigns as RBI guv due to ‘personal reasons’
UNDER PRESSURE Announces decision after mkts close; matter of concern for all Indians, says predecessor Rajan
: Reserve Bank of India (RBI) governor Urjit Patel resigned on Monday citing “personal reasons” — a decision analysts immediately linked to the intense pressure that the Union government has been exerting on the central bank 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, shortly after the financial markets closed on Monday.
Analysts said the dispute between the RBI and the government could have been a major factor in Patel’s decision to resign.
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 next year.
RBI deputy governor Viral Acharya had said in a speech in October that undermining a central bank’s autonomy could be “catastrophic”, prompting a public dispute that added to the perceived rift between the bank and the government.
The Modi government has stacked the RBI’s 18-member board with its own nominees, in what critics say is a move to exert
MUMBAI On account of personal reasons, I have decided to step down from my current position effective immediately. I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future.
URJIT PATEL, RBI governor, announcing his resignation
greater control over the central bank’s regulatory powers.
On Twitter, however, Modi praised Patel as a “thorough professional with impeccable integrity”.
“He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability,” Modi tweeted. “He leaves behind a great legacy. We will miss him immensely.”
Finance minister Arun Jaitley said the government appreciated the services rendered by Patel, both in his capacity as the governor and before that, deputy governor of RBI “It was a pleasure for me to deal with him and benefit from his scholarship,” he tweeted.