Govt wanted to dilute bankruptcy law: Urjit Patel on what led to the rift

Patel recalls the events surrounding his resignation in a book released on Friday

Former Reserve Bank of India Governor Urjit Patel has revealed that moves directed towards diluting bankruptcy law led to disagreements between the Union government and the central bank, according to a report by Bloomberg.

In a book released Friday, Patel — who headed the RBI between September 2016 and his unexpected resignation in December 2018 — said the government seemed to lose interest in the law in during the year when he resigned.

A circular issued by the RBI in February 2018, forcing banks to immediately classify borrowers as defaulters when they delayed repayments, led to the rift. The circular also barred