Urjit Patel resigns as Governor of Reserve Bank

December 10: Urjit Patel, Governor of Reserve Bank of India (RBI) tendered his resignation on Monday citing ‘personal reasons.’ Patel had taken charge as the governor in September 2016 after Raghuram Rajan resigned from the post on 19 June of that year. Patel’s term as RBI governor was to end in September 2019. There has been speculation regarding his resignation after RBI Deputy Governor Viral Acharya defended the autonomy of RBI in a speech which he delivered last month.

His resignation comes against the backdrop of sharp differences between the central bank and the government over how much autonomy the RBI should have. The government is widely perceived to have sought reduction of curbs on lending and to gain access to the RBI’s surplus reserves.

This is the official statement of Urjit Patel:

“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.”