Shared bonhomie with Urjit Patel despite differences

Shared bonhomie with Urjit Patel despite differences

Patel's decision to resign over the question of preserving the autonomy of the RBI may provide a new dimension to his tenure as a central bank governor.

"Support & hard work of RBI staff, officers & management has been proximate driver of Bank's considerable accomplishments in recent years".

Patel tendered his resignation citing personal reasons.

Tensions between the RBI and government spilled into the public domain after the RBI Deputy Governor Viral V Acharya stated that undermining the central bank's independence could be "potentially catastrophic". BJP's Subramanian Swamy has expressed concern over the sudden resignation of Patel but the Congress' top brass has launched a tirade against the BJP leadership. "I hope the resignation of the Governor is not a sign that this may soon become a reality", he added.

Succeeding an outspoken governor with "rockstar" appeal, Patel was often considered reticent, rigid, uncommunicative and someone who appeared reluctant to meet and consult not just finance ministry officials but his own colleagues in the bank.

"The manner in which RBI governor has been forced to quit is a blot on India's monetary and banking system".

Finance minister Arun Jaitley in October hit out at the RBI over a multi-billion-dollar bank loan crisis that is hampering India's corporate sector.

Jaitley tweeted Monday that the government "acknowledges with deep sense of appreciation" Patel's time at the bank.

"To that extent we must look at this decision and understand why Dr Patel, who was appointed by this government, essentially exercised this particular option", he added. The November 19 board meeting of the RBI was held in "such cordial atmosphere" that the resignation comes as a "shock", Mr Gurumurthy said.

"At this point, it is important that the government recognises the statement made by Urjit Patel", Rajan said. He leaves behind a great legacy.

We do not see good ahead after this move said one Dalal street broker anticipating a stock market crash in the days ahead. "That makes it even more surprising". Earlier, while the RBI had pushed for Mohan's name as the panel head, government was in favour of appointing Jalan.

Asked about the government-RBI tiff, former Chief Economic Advisor Arvind Subramanian told reporters here on Saturday that the central bank's autonomy must be protected because the country will benefit from strong institutions.

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