RBI Governor Urjit Patel Quits Citing 'Personal Reasons', Questions Rise

Now listed among the shortest tenured RBI Governor since 1992, Urjit Patel resigns the office as the 24th Governor in 2018. The resignation...

Now listed among the shortest tenured RBI Governor since 1992, Urjit Patel resigns the office as the 24th Governor in 2018. The resignation comes after him citing, 'Personal Reasons' for it. The former Governor, Raghuram Rajan was denied a second term and Urjit Patel was hand-picked y the BJP Government. Recent events show that there were constant mismatches between The RBI and the Finance Ministry.

Having clashes between the organisations for a better governance of the nation is healthy for all of us. Unlike the moves which are destined to have an upper hand over each other. The Revoking of Section 7 of the RBI Act to overwrite its autonomy by the government was the last straw.

The growing inflation rates, diminishing Rupee value, slow economic growth in combination with the lenders' repayment, have caused the two organisations to be at dual every time. Deputy Governor, Viral Acharya's speech regarding the Independence and Autonomy of the RBI has given us acumens of the uneasiness.

The speech includes the highlighted differences between the two, especially related to liquidity, credit flow and the controls to govern the weak and lower level banks. Overwriting the autonomous decision, and questioning, bargaining, pleading desperately, if not giving in, is not the proudest thing the Government has done.

Mr Urjit Patel was reported saying he would be back Friday morning for another meeting and in between this resignation happened. Responses by the eminent persons regarding this sudden resignation.

RBI board member Satish Marathe says, "I am both saddened and surprised when all things looked to have been settled and resolved unanimously".

Former Governor, D Subbarao had expressed his concern, "The market will be concerned not because of the resignation but that the government and RBI cannot establish a working relationship".

https://twitter.com/arunjaitley/status/1072103484642783233

Following this, PM Modi also tweeted:

"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," PM Modi tweeted.

Urjit Patel's Statement:

"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 have 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".