New Delhi:Amid an unprecedented public face-off with the government over a range of issues including autonomy, Reserve Bank of India Governor Urjit Patel stepped down from his post today citing “personal reasons”. Mr Patel was appointed in 2016 for a three-year term, which was to expire in September next year. “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 RBI in various capacities over the years,” Patel said in a statement.
The timing of Patel’s resignation is crucial. It comes four days ahead of the RBI’s scheduled board meeting on December 14, slated to discuss several contentious issues. Patel has cited “personal reasons”, but it is anybody’s guess why he chose to pull the plug.“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,” Patel said.
Congress President @RahulGandhi on #RBI #UrjitPatel : Assault on the institutions continues… #RBI Governor has resigned because he was protecting the institution… Am proud of the fact that people are standing up to PM and saying it’s not done… pic.twitter.com/NGLpj8zJee
— Supriya Bhardwaj (@Supriya23bh) December 10, 2018
Other side Former RBI Governor Raghuram Rajan said that,The act of resignation by a government servant or a regulator is really a note of protest. It is saying that the person cannot stay on given the kinds of policies that are being thrust upon them. It is really the only act that they have in their reservoir when faced with circumstances they cannot deal with. So, in that sense. this should be seen as a statement of protest and given that and given that Dr Patel is very honourable civil servant in some sense and a regulator I think we need to understand what prompted this act and I do not think Dr Patel is given to act in lightly so I think the government must note.He said that Believe resignation of the RBI governor is a matter of grave concern. Government must take extreme care in its relation further with the RBI.
#RBI was one of the pillars of India’s financial stability and had a large role to play in steering the country’s economy.The RBI has always remained free from political interference. Any attempts to reduce its independence are unconstitutional and should be condemned.
— Ashok Chavan (@AshokChavanINC) December 10, 2018
Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas MF said Investors are bracing for state election results. The exit polls indicated that the ruling BJP might lose in the state of Rajasthan and holds a tenuous position in Madhya Pradesh. This encouraged investors to tread on the side of caution. Both the benchmark Sensex and the Nifty finally closed the day with losses of nearly 2%. All the sectoral indices on the NSE closed in the red with the realty, private banking and financial services indices losing over 2% for the day.
P Chidambaram, Former finance minister said Saddened, not surprised, by Dr Urjit Patel’s resignation. No self respecting scholar or academic can work in this government. November 19 was the day of reckoning. Dr Patel should have resigned on that day. Dr Patel may have thought that government will retrace its steps. I knew it would not. Good he quit before another humiliating meeting.
#RBIGovernor's resignation shows how Modi govt is all for ruining one more institution. There were reports of govt's too much interference in the #RBI and how #UrjitPatel was not allowed to function in the best interest of country's economy.
— Ashok Gehlot (@ashokgehlot51) December 10, 2018