Urjit Patel quits as RBI Governor nine months short of term

RBI Governor Urjit Patel resigned on Monday, weeks after differences between the central bank and the government regarding its “independence” became public.

Patel, 54, quit the post about nine months before his three-year term was to come to an end in September 2019.

Patel, who cited “personal reasons” for quitting the prestigious post, is the first RBI governor to resign since 1990.

He stepped down just ahead of the scheduled meeting of the RBI Board meeting on December 14 to consider proposals like RBI governance and providing liquidity for Non-Banking Financial Companies (NBFCs).

“On account of personal  reasons, I have decided to step down from my current position, effective immediately,” the 24th RBI Governor said in a statement.

“It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years,” he added.

´Support & 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,” he said.

Patel, who was the Deputy Governor of the RBI before being elevated to the post of RBI Governor, had succeeded Raghuram Rajan after the latter’s term ended in September 2016.

There was a lot of speculation weeks back about Patel resigning after the differences between the RBI and the government became public, with RBI Deputy Governor Viral Acharya saying there was a need to ensure RBI’s independence.

The speech, delivered by Acharya, was said to have the backing of Patel.