Urjit Patel's resignation beginning of economic emergency: Mamata Banerjee

Terming the resignation of RBI governor Urjit Patel as "unprecedented", West Bengal Chief Minister Mamata Banerjee Monday said economic emergency in the country has begun.

Banerjee, who attended the opposition meeting here, hit out at the Centre over Patel's resignation saying it was a matter of "great shock".

"This has never happened before. This is unprecedented. We are deeply concerned. The RBI is the custodian of public money. The credibility of all institutions is being destroyed. This is a financial and economic emergency," she said in a tweet.

Banerjee alleged that political emergency was ongoing in the country and with the resignation of the RBI governor financial emergency has also begun.

"BJP is behaving like a dictator. Political emergency already exists everywhere. They are threatening every political party and so many leaders sent to jail. If the RBI governor also has to resign, its a matter of grave concern for the country. With this, financial emergency has also started," she said.

Patel, who had a run-in with the government over autonomy of the central bank, in a brief statement on Monday said he has decided to step down as RBI governor with immediate effect.

"Institutions, from the CBI to the RBI, have become total disasters. This has never happened before. It is a matter of great shock. We must protest," Banerjee said. She added that the issue was discussed in the opposition meeting and will be taken up in Parliament as well.

Banerjee has been a vocal opposition of the Modi government's economic policies like demonetisation and implementation of the goods and services tax.

Soon after Urjit Patel resigned, Prime Minister Narendra Modi lauded his contribution saying he steered the banking system "from chaos to order" and ensured discipline.