Cites personal reasons for resignation
Reserve Bank of India (RBI) Governor Urjit Patel has resigned from his post citing personal reasons. "On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said in his letter.
RBI and the government have been at loggerheads since October over a range of issue relating to autonomy, liquidity, credit flow and the controls governing weak banks. Last month, deputy governor Viral Acharya speech sought to defend the autonomy of the RBI, further escalating the differences between the government and RBI.
The RBI has an excess reserve of Rs. 3.6 lakh crore, which the government sought to use for development purpose, sources said. However, the RBI contended that it is essential to keep extra reserve in view of possible emergencies.
Last month, the RBI's board met in Mumbai that concluded on a conciliatory note, with the central bank agreeing to set up a panel on sharing surplus reserves and restructure loans of small businesses up to Rs. 25 crore.
Urjit Patel was appointed as the 24th Governor of RBI on September 5, 2016.
All Indians should be concerned, says ex-RBI Guv Rajan
With RBI Governor Urjit Patel putting in his papers, his immediate predecessor Raghuram Rajan Monday said "all Indians" should be concerned as strength of institutions is important for growth and development.
"I think Dr Patel has made a statement and I think this is the ultimate statement that a regulator or a civil servant can make. I think the statement should be respected," Rajan told a news channel. "We should" go into the details as to why there was impasse, which forced this ultimate decision, he noted.