Urjit Patel quits as RBI Governor; cites personal reason behind resignation

Months after an unprecedented face-off with Central government, the Reserve Bank of India (RBI) Governor Urjit Patel on Monday stepped down from his position with immediate effect.

Patel took over as RBI Governor in September 2016 and his tenure was supposed to end in September 2019. (Image: AFP)

New Delhi: Months after an unprecedented face-off with Central government, the Reserve Bank of India (RBI) Governor Urjit Patel on Monday stepped down from his position with immediate effect. As per initial reports, it is being said that Patel has tendered his resignation citing personal reasons. Patel took over as RBI Governor in September 2016 and his tenure was supposed to end in September 2019. The decision comes almost a month after RBI's marathon board met for more than nine hours in Mumbai which concluded on a conciliatory note, with the central bank agreeing to set up a panel on sharing surplus reserves and restructure loans of small businesses up to Rs. 25 crore. Soon after offering his resignation, Patel in an official letter said that it was his privilege and honour to serve the Central Bank.  "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," Patel said in his letter. "Support and hard work of RBI staff, officers & management has been proximate driver of Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues&Directors of RBI Central Board & wish them all the best for future," the letter read further. Within minutes of his resignation, Prime Minister Narendra Modi took to Twitter and said that both government and the Central bank would miss him immensely. "Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely," PM Modi wrote.

Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability.

— Narendra Modi (@narendramodi) December 10, 2018

Soon after the news came into light, Finance Minister Arun Jaitley took to Twitter and acknowledged the same and extended his good wishes to the former RBI governor. "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."

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. (1/2)

— Arun Jaitley (@arunjaitley) December 10, 2018

However, the Senior Bharatiya Janata Party (BJP) leader Subramanian Swamy said that Patel's decision to quit will be bad for the economy of the country. "His resignation will be bad for our economy, RBI & govt. He should at least stay till July, until the next govt comes to power. PM should call him & find out the reason&dissuade him from leaving in larger public interest." Congress party was too quick to express its views on Patel's unprecedented resignation as RBI Governor. Official Twitter handle of the party termed the move as chowkidar's (referring to PM Narendra Modi) assault on democratic institutions.

Another one bites the dust.

This is the result of our 'chowkidar's' assault on democratic institutions - RBI Governor, Urjit Patel steps down. https://t.co/SFEih1WYZ9 — Congress (@INCIndia) December 10, 2018

Patel took charge as the RBI Governor on September 4, 2016, after Raghuram Rajan resigned from the post in on June 19, 2016. After the much-awaited RBI board meet which happened last month, the Central Bank agreed to inject around Rs 8,000 crore worth of liquidity into the system through open market operations.