RBI Not Dependent On Any One Particular Individual: NITI Aayog VC On Patel's Resignation

Following Urjit Patel's resignation as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar Tuesday said the central bank's institutional capabilities are 'very strong' and it will do whatever is required for the markets and economy.

Kumar further said although Patel has done an amazing work in the last two years as the RBI Governor, the functioning of the central bank is not dependent on any particular individual.

"RBI's institutional capabilities are very strong and they will do whatever is required for the markets and economy.

"The fact is that RBI itself is such a professional institution, and such a long-standing institution that you know, the business will continue," Kumar said on the sidelines of 'Inclusive Finance India Summit'.

Patel, after facing the possibility of an unprecedented action from the government over differences on a range of issues including autonomy, had stepped down from his post on Monday citing "personal reasons".

The Niti Aayog vice chairman also assured that the government will do whatever is required to continue its business as usual.

"Patel has done an amazing work in the last two years...But RBI is not dependent on any one particular individual," Kumar said.

Commenting of weakening of the rupee after Patel's resignation, Kumar said: "The government also, I am sure, is seized of the matter and will take care whichever way it's possible".

The Sensex opened over 500 points lower. It was trading 517.97 points, or 1.48 per cent, down at 34,441.75.
The rupee plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

Addressing the delegate, Kumar said that the financial inclusion must be about employment, job creation and growth.

He also stressed on need to provide greater access to credit in the North East region.

Noting that mobile banking is the strongest method for increasing financial inclusion in the country, Kumar said, "In my view, the future is digital finance and the era of brick and mortar banking is over".

Patel, whose three-year tenure was to end in September 2019, is not the first RBI chief who has opted to step down before the end of his tenure, but he is the first one to do so since 1990. Differences have been brewing between the Central Bank and the Finance Ministry for last several months but became public over the last few weeks with both sides airing their grievances. Efforts to show reconciliation now appear like fig leaf as the divide had surely widened.

(With input from agencies)