Advertisement
Sunday, Nov 28, 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

Omicron: New Strain Of Coronavirus Escalates Need For Global Vaccine Sharing

Omicron: New Strain Of Coronavirus Escalates Need For Global Vaccine Sharing

'Despite the repeated warnings of health leaders, our failure to put vaccines into the arms of people in the developing world is now coming back to haunt us', wrote former British PM Gordon Brown.

Covid-19: Experts' Take On Omicron And Possibility Of Third Wave In India

Covid-19: Experts' Take On Omicron And Possibility Of Third Wave In India

Though the health experts and scientists in India have advised caution yet they feel that the current immune profile of the majority of the population in India makes them less vulnerable to Omicron as compared to any other country in the world.

IND Vs NZ, First Test, Day 4, Live: Shreyas Iyer Leads India Fightback

IND Vs NZ, First Test, Day 4, Live: Shreyas Iyer Leads India Fightback

The first India vs New Zealand Test is delicately poised with both teams having an opportunity to force a decision. Follow here live cricket scores and updates of IND vs NZ on Day 4.

What Is Omicron: All You Need To Know About The New Coronavirus Strain

What Is Omicron: All You Need To Know About The New Coronavirus Strain

After the detrimental Delta variant which took the world by storm in the second wave of Covid-19, WHO recently declared ‘Omicron’ as the latest ‘variant of concern’ (VOC).

Advertisement