Urjit Patel steps down as RBI Governor

The RBI and the government have been at loggerheads since October on three key issues that included excess reserves. The RBI has an excess reserve of Rs. 3.6 lakh crore, which, the government had said, could be used for development which RBI governor Urjit Patel reportedly denied.




Dr. Urjit Patel (File Photo)

Dr. Urjit Patel on Monday announced that he was stepping down from his position as the Reserve Bank of India (RBI) 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,” he stated.

Dr. Patel, was appointed the Governor of the RBI in 2016 after Raghuram Rajan. He was previously the Deputy Governor of the central bank.

Prior to his term as Deputy Governor, which began in January 2013, Dr. Patel was with the Boston Consulting Group as an advisor on energy and infrastructure.

He has a Ph.D. in Economics from Yale University and an M. Phil. from Oxford University. Dr. Patel was with International Monetary Fund (IMF) between 1990 and 1995 and worked on the U.S., India, Bahamas and Myanmar desks.

BJP leader and economist Subramanian Swamy called Urjit’s resignation as bad of Indian economy, RBI and Modi government. He urged prime minister to dissuade him from leaving the job inlarger public interest.

“His (Urjit’s) resignation will be bad for our economy, RBI and govt. He should at least stay till July, until the next govt comes to power. PM should call him & find out the reason and dissuade him from leaving in larger public interest,” ANI quoted him as saying.

The RBI and the government have been at loggerheads since October on three key issues that included excess reserves. The RBI has an excess reserve of Rs. 3.6 lakh crore, which, the government had said, could be used for development which RBI governor Urjit Patel reportedly denied.

Former RBI governor Raghuram Rajan said “all Indians should be concerned about RBI Governor Urjit Patel’s resignation”