Viral Acharya quits RBI: Implication for monetary policy, reforms, markets

Equity markets seem to be unfazed by the development at RBI and now look to other cues for direction

The resignation of Reserve Bank of India’s (RBI’s) deputy governor Viral Acharya six months ahead of the scheduled completion evoked mixed reactions from experts, especially at a time when the financial sector has seen a number of developments over the past one year.

In the past three years, the central bank has seen the sudden exit of Raghuram Rajan and Urjit Patel as RBI Governors, and now Viral Acharya as its Deputy Governor, who was in charge of the Monetary Policy Department and the Department of Economic and Policy Research, among others.

“Dr. Acharya’s departure is not a complete surprise,