RBI governor Urjit Patel resigns: PM Modi to Raghuram Rajan react

Patel cited 'personal reasons' for his resignation

RBI Governor Urjit Patel steps down with immediate effect. Here are the reactions to the development.

Finance Minister Arun Jaitley reacts via Twitter to the resignation: "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. I wish Dr. Patel all the very best and many more years of public service."
Former RBI Governor Raghuram Rajan to ET NOW: Believe resignation of the RBI governor is a matter of grave concern. Government must take extreme care in its relationship further with RBI.

Prime Minister Narendra Modi's reaction:

P Chidambaram reacts to the development via Twitter, says "Saddened, not surprised, by Dr Urjit Patel's resignation. No self respecting scholar or academic can work in this government." Former Deputy Governor, Rakesh Mohan to CNBC TV18: Urjit Patel’s resignation is a very sad development for the RBI; hope better sense will prevail & stability will return to RBI.


Economist Surjit Bhalla says to CNBC TV18 that Urjit Patel’s resignation not completely unexpected as differences between the Govt and RBI were huge.

YH Malegam (Former Member, RBI Board) to CNBC TV18 -- The markets will feel that there is a fair bit of uncertainity for the future and that is very bad for the economy and for business Ahmed Patel (Congress leader) to ANI: "The manner in which RBI governor has been forced to quit is a blot on India’s monetary & banking system. BJP Govt has unleashed a defacto financial emergency. The country’s reputation and credibility is now at stake."

Former Divestment Minister Arun Shourie speaks to CNBC-TV18 News -- "Urjit Patel's departure shows that the Govt has crushed another regulatory body."

RBI central board member S Gurumurthy to ANI: "Surprised at news that RBI Guv resigned. Previous meeting was held in such cordial atmosphere that it comes as a shock. All directors said media had created a wrong perception while inside it was different. That makes it even more surprising." 

Jamal Mecklai, CEO, Mecklai Financial Services: The rupee has already weakened in the NDF market, which is obvious. This is a terrible thing. After the last battle, it was clear that something like this could happen. How can a self-respecting person stay on when being pushed around in this fashion. The rupee was quoting at 72.5 in the NDF market, which leads. It should open weaker than 72 tomorrow.

Arun Kumar, market strategist at Reliance Securities: The news of RBI governor resigning will be a big dampner for the market which will see the market opening in red on Tuesday. The market has partially discounted the state election outcome. In the near term, the trade war between US and China and election outcome will have a huge bearing on the Indian market. The Nifty has support at 10,250 and subsequently 10,000 levelsFormer RBI Governor Raghuram Rajan to ET NOW: Believe resignation of the RBI governor is a matter of grave concern. Government must take extreme care in its relationship further with RBI.