Patel's RBI exit adds to investor nervousness ahead of Lok Sabha polls 2019

The loss of Patel adds another layer of risk to monetary policy amid economic threats both foreign and domestic

Urjit Patel’s shock exit as governor of the Reserve Bank of India dealt investors another bout of monetary policy uncertainty when they were already bracing for an electoral test of Prime Minister Narendra Modi.

Patel, who was nine months from the end of his three-year term as governor, roiled financial markets and surprised the government by quitting on Monday, citing “personal reasons.”

He did so ahead of a board meeting on Friday, at which government representatives are expected to push the RBI to do more to ease a cash crunch and hand over more of its excess capital. State election results due