India’s economy is enduring a lot of ups and downs. In the midst of this, RBI governor, Urjit Patel resigned as the RBI governor on 10th December,2018.
An year still being left for his term to complete, he suddenly resigned stating that, ” On account of personal reasons I have decided to step down from my current position effective immediately”.
The Modi government and Urjit had differences on a number of subjects including the central bank’s autonomy.
There have been speculations about the Modi government being the cause of RBI’s tribulations. “The Modi government has been trying to raid the capital reserves of RBI for fiscal purposes”, according to the Deputy Governor of RBI.
The government and Urjit Patel had mutually agreed to form a committee in order to make a decision on the matter of giving funds to the Modi government.
Manmohan Singh raised concern over the sudden resignation saying, “I hope that the Centre’s intention to raid the capital reserves for fiscal purposes, does not become a reality”.
In his tweet, Arvind Kejriwal said, “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”. Modi’s Twitter handles also tweeted after Urjit’s resignation, stating, “Will miss him”.
It was Urjit Patel who helped the Modi government implement it’s demonetisation scheme. The resignation of the RBI governer raises questions on the Modi government and might as well show an impact on the elections ahead. The financial sector will witness a significant impact because of RBI governor’s resignation.
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