RBI Governor Dr. Urjit Patel resigns with immediate effect citing ‘personal reasons’

RBI Governor Dr. Urjit Patel resigns with immediate effect citing 'personal reasons'
Patel had been embroiled in a battle with the Centre over the autonomy of the central bank in the months leading to his resignation

Reserve Bank of India (RBI) Governor Dr. Urjit Patel on Monday resigned from his post with immediate effect, citing “personal reasons”.

“On account of personal reasons, I have decided to step down from my current position effective immediately,” he said in a brief statement released by the RBI.

Patel was appointed the 24th Governor of the RBI on September, 2016 for a three-year term. He had been embroiled in a battle with the Centre over the autonomy of the central bank in the months leading to his resignation.

Prime Minister Narendra Modi took to Twitter to thank the former Governor for his service to the bank and the nation.

“Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely,” he wrote.

A similar sentiment was shared by Finance Minister Arun Jaitley, who wrote, “The Government acknowledges with a deep sense of appreciation the services rendered by Dr. Urjit Patel to this country both in his capacity as the Governor and the Deputy Governor of The RBI. It was a pleasure for me to deal with him and benefit from his scholarship,”

The opposition Congress party, meanwhile, was quick to respond to the resignation, calling it a “blot” on India’s monetary and banking system.

Congress President Rahul Gandhi alleged that the governor resigned as he was not allowed to function, while the party’s spokesperson Randeep Singh Surjewala claimed that the NDA government had “denigrated” another institution and that his exit was the result of attempts to stifle RBI’s independence.

“The manner in which the RBI governor has been forced to quit is a blot on India’s monetary and banking system. BJP government has unleashed a defacto financial emergency. The country’s reputation and credibility is now at stake,” senior Congress leader Ahmed Patel said.

Even former RBI Governor Raghuram Rajan advised caution following the announcement, saying “All Indians should be concerned”.

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