Urjit Patel steps down as the RBI Governor amid scuffle with the government.
In his statement he said, “On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honor to serve in the RBI 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 RBI and the Government have been in a feud since October over some key issues including excess reserves in the bank.
The Government says the excess reserve holding by the RBI can be used for development, but the bank says that keeping extra reserves are essential in view of possible emergency.
Urjit Patel was appointed in 2016, as the Governor of RBI for 3 year term, which will end in September 2019.
Prime Minister Narendra Modi tweeted after his resignation “Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely”.
Finance Minister, Arun Jaitley,also tweeted after his resign “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”.