RBI Gov. resigns, cites personal reasons

Citing personal reasons, Urjit Patel has resigned as the Reserve Bank of India. His resignation comes against the backdrop of an increasing tension between the finance ministry and the Reserve Bank of India. Urjit Patel, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.

In recent months, the government and the RBI have been at loggerheads over whether the RBI has been too hawkish in its stance towards lenders and the economy given a drop in the inflation rate and signs of slower growth, as well as in the face of defaults by a major lender.

There has been speculation of his resignation after deputy governor Viral Acharya’s speech last month that sought to defend the autonomy of the RBI and the subsequent differences between the government and the RBI over various issues related to liquidity, credit flow and the controls governing weak banks.

Source: ET