Former Reserve Bank of India Governor Raghuram Rajan has reacted to the shock resignation of RBI Governor Urjit Patel calling it a ‘note of protest’ by a government servant.
“Believe resignation of RBI Governor Urjit Patel is a matter of great concern. Resignation by a government servant is a note of protest when faced with circumstances they cannot deal with,” Rajan, who was denied a second term by the Narendra Modi government in 2016, told ET Now.
News agency Reuters quoted Rajan as saying, “I think this is something all Indians should be concerned about because strength of our institution is really important both for growth and sustainable growth in equity and the economy.”
Rajan added, “I think his statement should be respected. We should go into the details on why there was an impasse which forced him to take this ultimate decision.”
His reactions came moments after Patel resigned from his post over reported differences with the central government, which has been accused of diluting the independence of the federal government. Although there were rumours of Patel’s deputy Viral Acharya too resigning, but the RBI spokesperson denied social media rumours.
Patel had written in his resignation note, “On account of personal reasons, I have decided to step down from my current position (RBI Governor) effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years.”
Reacting to Patel’s resignation, Modi said, “Dr Urjit Patel is an economist of a very high calibre with a deep&insightful understanding of macro-economic issues. He steered the banking system from chaos to order. He leaves behind a great legacy. We’ll miss him immensely.”
Union Finance Minister Arun Jaitley had tweeted, “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.”
More to follow