N.S. Viswanathan, the senior-most Deputy Governor, likely to hold charge as RBI’s interim lead

New Delhi:  In a surprise move, the Reserve Bank of India (RBI) Governor Urjit Patel resigned last evening, citing personal reasons.

Commenting on the development, former RBI Governor Raghuram Rajan said “Resignation of the RBI Governor is a matter of grave concern. Government must take extreme care in how it proceeds further in its relationship with the RBI.”  

N.S. Viswanathan, the senior-most Deputy Governor, is likely to hold charge as RBI’s interim lead.

Meanwhile, Prime Minister Narendra Modi said, “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,” Modi tweeted.

Finance Minister Arun Jaitley said, “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. I wish Dr. Patel all the very best and many more years of public service.”  In recent times, the relationship between the Central Bank and the government had turned frosty over a host of issues, including the economic capital framework, PCA guidelines for banks and a special facility for Non-Banking Financial Companies (NBFCs).