In a sudden unprecedented development, the Reserve Bank of India (RBI) Governor Urjit Patel has resigned from his post citing ‘personal reasons’. It is important to note that there have been reports of conflict between the PM Modi led NDA government and the central bank.
For the first time in the history of the central bank, a serving RBI Governor resigned from his post on Monday amid feud with the Modi government. He had about one more year left in his term
Urjit Patel was appointed governor of RBI in 2016 and had about one more year left in his term. According to sources, his deputy Viral Acharya is also likely to step down in the days to come.
The differences between the government and the RBI are said to be related to the important issues of liquidity, credit flow and the controls governing weak banks.
In his statement published on the RBI web site Urjit Patel cited personal reasons for quitting and appreciated the hard work and support of the RBI staff:
“On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years. The support and hard work of RBI staff, officers and management has been the proximate driver of the Bank’s considerable accomplishments in recent years. 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”
