Why did RBI Governor Urjit Patel resign?

New Delhi: RBI Governor Urjit Patel, who had a run-in with the government over the autonomy of the central bank, resigned from his post-Monday citing ‘personal reasons’.

In a brief statement, Patel said he has decided to step down with immediate effect. Patel was appointed the 24th Governor of the RBI on September 2016 for a three-year term.

In a statement, Patel said, “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,” the statement added.

Patel’s resignation comes after the central bank’s spat with the Finance Ministry over issues related to autonomy and governance of the central bank. In the press conference after last week’s monetary policy committee meet, Urjit Patel had refused to comment on the friction with the government, including the invocation of the never-before-used Section 7 or the proposed economic capital framework for the central bank.

Immediately after Urjit Patel’s resignation, Congress issued a statement calling it a blot on India’s monetary and banking system. Congress said, “The manner in which the RBI governor has been forced to quit is a blot on India’s monetary and banking system. Integrity of another institution stands denigrated by Modi regime.”

A Harsha Vardhan