'Urjit Patel's resignation a severe blow to economy', says former PM Manmohan Singh

Singh said that Patel’s resignation came at a time when Indian economy is faced with many headwinds.

Over the past few weeks, both government and the RBI had been fighting over how much autonomy the RBI should have. (Image: PTI)

New Delhi: Former Prime Minister Manmohan Singh expressed his sadness over RBI Governor Urjit Patel’s resignation on Monday and termed his sudden decision to demit office a severe blow to the Indian economy. In a statement, Singh said Patel is known to be an economist of high repute and also someone who cared deeply about India’s financial institutions and economic policies. He said that Patel’s resignation came at a time when Indian economy is faced with many headwinds. “There have been apprehensions expressed earlier by the Deputy Governor of the RBI about the government’s intent to raid the capital reserves of RBI for fiscal purposes. I hope the resignation of the Governor is not a sign that this may soon become a reality,”Singh said in the statement which he closed by wishing Patel success in future endeavours. Earlier in the day, Reserve Bank of India (RBI) Governor Patel announcing his resignation from the apex bank with immediate effect 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.