Advertisement
Saturday, Dec 04, 2021
Outlook.com
Outlook.com

All Indians Should Be Concerned: Raghuram Rajan On Urjit Patel's Resignation As RBI Governor

Patel resigned from his post on Monday with immediate effect, citing "personal reasons", setting of a major crisis in India's politico-economic sphere.

All Indians Should Be Concerned: Raghuram Rajan On Urjit Patel's Resignation As RBI Governor
| Composite - File Photos
All Indians Should Be Concerned: Raghuram Rajan On Urjit Patel's Resignation As RBI Governor
outlookindia.com
2018-12-10T19:59:21+05:30

Reacting to the surprise resignation of Urjit Patel as the governor of Reserve Bank of India (RBI) on Monday, former chief of the central bank, Raghuram Rajan said that it's a matter of concern for all Indians.

“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,” Rajan told ET NOW channel.

Patel resigned from his post on Monday with immediate effect, citing "personal reasons", setting of a major crisis in India's politico-economic sphere.

“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.

His resignation comes in the backdrop of the ongoing tiff between the government and the central bank over the liquidity and credit crunch in the economy that provoked an extraordinary meeting of the RBI board on November 19.

"On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said in a brief statement released by the RBI.

Patel had taken charge as Governor on September 4, 2016, for a three-year term, following Raghuram Rajan's decision not to seek a second term.

The historic tensions in government-central bank relations were reignited in October when, in a public lecture, RBI Deputy Governor Viral Acharya talked about the independence of the Reserve Bank, arguing that any compromise could be "potentially catastrophic" for the economy.

The government and the RBI have been fighting for weeks over how much autonomy the RBI should have as the administration of Prime Minister Narendra Modi seeks to reduce curbs on lending and to gain access to the RBI’s surplus reserves.

(With Agency inputs)

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Bitcoin, Ethereum Fall Over 5%, Meme Coins Shiba Inu, Dogecoin Also In The Red

Bitcoin, Ethereum Fall Over 5%, Meme Coins Shiba Inu, Dogecoin Also In The Red

Global crypto market witnesses fall of over 6.16 per cent, while Bitcoin is down 5.88 and Shiba Inu dropped over 4 per cent in the last 24 hours at 8 am, as per coinmarketcap.com.

Five Points On How Taliban Wants To Define Marriage For Women

Five Points On How Taliban Wants To Define Marriage For Women

Taliban government's revised version of women’s rights decree largely emphasizes on marriage and re-marriage which predictably is in accordance with the sharia laws.

IND Vs NZ, Live, 2nd Test: Ajaz (10/119) Scripts History In Mumbai

IND Vs NZ, Live, 2nd Test: Ajaz (10/119) Scripts History In Mumbai

Follow here Day 2 live cricket scores of India vs New Zealand second Test at Mumbai's Wankhede Stadium. India are batting first after Virat Kohli won the toss.

Omicron Severity Is Anticipated To Be Low: Health Ministry

Omicron Severity Is Anticipated To Be Low: Health Ministry

Will the Omicron variant drive the Covid-19 third wave in India? The Union Health Ministry says the chances are very low.

Advertisement