Urjit Patel resigns from the position of RBI Governor
Posted on: 11/Dec/2018 9:55:51 AM
Stating specific personal reasons, Urjit Patel has relieved himself down from the position of Reserve Bank of India (RBI) Governor. The resignation is speculated as a result of increasing heat between the Finance Ministry and RBI in terms of national economic based decisions and bank moves of the country. Urjit Patel was the 24th Governor of RBI who took the office from September 5, 2016. He is 55 years old and had one of the shortest tenure in the office of the central bank since the year 1992.
Raghuram Rajan was replaced by Urjit, handpicked by the current BJP central government. Drop in the inflation and some policies being too harsh on the lenders and users of the bank are some of the primary reasons for the tension prevailing between the finance ministry and RBI. Being a major lender the central bank witnessed a steady fall of growth owing to several financial misconceptions led by both central government and the bank itself, thus leading to the indirect sack of the governor in the form of resignation.
Issues based on liquidity, credit floe and RBI’s control over weak banking sectors were some of the secondary reasons for the government’s varied perceptions on financial governance of the central bank. Former RBI chief Raghuram Rajan stated in an interview that the government needs to provide clarification statement about the concerns of the resignation and other important decisions dealt with RBI in coherent with the central finance ministry.
In spite of the political speculations Urjit Patel clearly mentioned in his statement that his resignation was clearly based on personal reasons. He thanked his peers and colleagues working for a unified theme of raising the banking sectors of India. The actual reason for the resignation and other inside job may reveal after some days as expected by some economic experts.
