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News and Trends

Urjit Patel Quits as the RBI Governor Amid the Ongoing Tension With the Government

"Effective Immediately" states Urgit Patel statement on stepping down as the RBI governor
Urjit Patel Quits as the RBI Governor Amid the Ongoing Tension With the Government
Image credit: Facebook
Entrepreneur Staff
Features Editor, Entrepreneur India
3 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

The ongoing tension between the government and the Reserve Bank of India over central bank autonomy has not been a hidden affair. Amid this feud RBI Governor Urjit Patel has stepped down from his post on Monday citing a personal reason.

Patel was appointed as the chief of the central bank in 2016 as he replaced Raghuram Rajan. Patel’s resignation comes as a shock to many.

"On account of personal reasons, I have decided to step down from my current position effective immediately," he stated in his letter. While Rajan stepped down to return to academia, Patel’s letter talks nothing about his future plans.

Prime Minister Narendra Modi took to his Twitter, “Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability.”

Urjit Patel’s full statement read, “Statement by Governor 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 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.”

 

While Arun Jaitley wished Patel on his future endeavours tweeting, “The Government acknowledges with 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."

Former RBI governor Rajan following his outspoken trait wrote, “All Indians should be concerned about Governor Patel's resignation."

This whole issue began taking a larger form when sometime ago the government started pressuring the bank to release the reserves. As per the economist and critics, this act would just flourish the economy in the upcoming election year.

There were also comprehensions that the Governor at the end might have to give in to the demands. The resignation comes before the big meeting that was all set to be held on December 14 where curial decisions were supposed to be taken.

Appointed two years ago, Patel’s three-year tenure was supposed to end in September 2019 and  his sudden resignation is alarming.

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