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RBI Governor Urjit Patel resigns, here's how leaders, economists reacted

News Nation Bureau | Edited By : Aniruddha Dhar | Updated on: 10 Dec 2018, 10:25:45 PM
Urjit Patel's three-year term was to end in September 2019 and he was eligible for a second term. (PTI/file)

New Delhi:

Reserve Bank of India (RBI) Governor Urjit Patel resigned on Monday, citing “personal reasons”. His resignation came four days ahead of a crucial meeting of the board of the central bank that could have discussed issues of growing differences with the government. The government seems to have accepted his resignation with Prime Minister Narendra Modi saying Patel will be missed "immensely".

No announcement of Patel's replacement has yet been made.

"On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said. "It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years."

Here is how political leaders, economists reacted to Urjit Patel's resignation:    

PM Modi: “Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability.

“Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely.”

Finance Minister Arun Jaitley: “The Government acknowledges with deep sense of appreciation the services rendered by Dr. Urjit Patel to this country both in his capacity as the Governor and the Deputy Governor of The RBI. It was a pleasure for me to deal with him and benefit from his scholarship.”

Former RBI Governor Raghuram Rajan: “Believe resignation of RBI Governor Urjit Patel is a matter of great concern. Resignation by a government servant is a note of protest when faced with circumstances they cannot deal with…The government needs to understand what prompted this act by Urjit Patel.”

Congress president Rahul Gandhi: "With the RBI Governor's resignation one more independent institution has fallen. The BJP has demolished every temple of modern India and if not stopped, will surely destroy India itself."

Former PM Manmohan Singh: "I've known Dr Patel to be an economist of high repute and also someone who cared deeply about India’s financial institutions and economic policy. His sudden resignation is unfortunate and a severe blow to nation’s economy.”

Former finance minister P Chidambaram: “Saddened, not surprised, by Dr Urjit Patel's resignation. No self respecting scholar or academic can work in this government.”

West Bengal Chief Minister Mamata Banerjee: “We’ll meet the President because financial stability is not there, the Reserve Bank of India Governor has resigned. It is a matter of great concern in this country and the financial emergency has already started.”

Andhra Pradesh Chief Minister Chandrababu Naidu: “The resignation of RBI Governor Sri Urjit Patel is a sad culmination of BJP led union govt's destructive efforts to demolish critical national institutions. First CBI, now RBI. If this destruction continues, no institution will survive and Indian democracy will be in deep danger.”

Delhi Chief Minister Arvind Kejriwal: “RBI governor Urjit Patel has been eased out since he refused to allow the Modi govt to plunder Rs Three lakh crore of RBI reserves. Now Modi govt will get a more pliable RBI governor who will allow this loot.”

Rajya Sabha MP Subramanian Swamy: “His resignation will be bad for our economy, the RBI and government. He should at least stay till July, until the next govt comes to power. The PM should call him and find out the reason and dissuade him from leaving in larger public interest.”

Senior Congress leader Kapil Sibal:  “Urjit Patel's resignation , result of arrogance of a government's attempt to stymie yet another institution and erode its autonomy . Economic policy should not be driven by politics alone . When PM , not economists , takes economic decisions the mess is for all to see .”

Gujarat MLA Jignesh Mevani: “Resignation of Urjit Patel is, undoubtedly, an outcome of the never ending unreasonable intervention on the part of the PMO. Isn't this most evident.The reasons given by Mr.Patel for his resignation are to avoid any controversy. 'We the people' need to worry about our pockets.”

Kerala Chief Minister Pinarayi Vijayan‏: “The resignation of RBI Governor Urjit Patel is disturbing, though there is little to be surprised about it. The incumbent Government at the Centre has time and again proven their expertise in destroying Institutions. The voices of reason and sanity are being stifled.”

Patel's three-year term was to end in September 2019 and he was eligible for a second term like most of his successors barring a few like his outspoken predecessor Raghuram Rajan.

For last few weeks, he seemed to have been at loggerheads with the finance ministry on matters ranging from the appropriate size of the reserves the central bank must hold to the easing of lending norms for sectors such as small and medium enterprises.

(With PTI inputs)

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First Published : 10 Dec 2018, 10:25:17 PM