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Urjit Patel Steps Down as RBI Governor, Cites Personal Reasons

10 December 2018

While announcing his resignation, the former RBI chief said that he has stepped down following some personal reasons, adding that it was his privilege and honour to serve in the Reserve Bank of India in various capacities over the years.

In a statement, Mr Patel thanked his staff and officers, calling them the reason for the "bank's considerable accomplishments in recent years". He steered the banking system from chaos to order and ensured discipline.

P Chidambaram reacts to the development via Twitter, says "Saddened, not surprised, by Dr Urjit Patel's resignation".

"Reports of deputy governor Acharya also having quit are baseless and incorrect", an RBI spokesperson told news agency Press Trust of India.

Who is Urjit Patel and why did he resign
Urjit Patel and Arun Jaitley. File

Prime Minister Narendra Modi has said that RBI Governor "leaves behind a great legacy". "We will miss him immensely", said Modi.

Patel had taken charge as the governor in September 2016 after Raghuram Rajan resigned from the post on 19 June of that year and had overseen the government-driven ban on high-value currency notes.

Independent Director of the RBI, Satish Marathe, while speaking to India Today TV, said he was both surprised and sad at Patel's resignation.

Indian business dailies reported in the last two months that Modi's government had invoked never-before-used powers to send at least three letters to Patel seeking to affect the central bank's decision-making. "The government's attack on RBI's autonomy led to RBI Governor Urjit Patel's exit", Gandhi said, according to CNBC-TV18. "The previous meeting was held in such cordial atmosphere that it comes as a shock", he said. ".Modi thinks that he's the biggest economist and he doesn't need them, so they are resigning", ANI quoted Sibal as saying. All directors said media had created a wrong perception while inside it was totally different. BJP Govt has unleashed a defacto financial emergency. His tenure was slated to end in September 2019. "That makes it even more surprising", he said. The clashes were over wide-ranging issues such as central bank independence, its reserves and the manner in which it dealt with India's bad loans crisis. However, it spilled over into regulation, something the central bank believes is its exclusive domain.

Urjit Patel Steps Down as RBI Governor, Cites Personal Reasons