RBI Governor Urjit Patel Resigns
Urjit patel’s sudden resignation and its effect on the Indian economy.
The Reserve Bank of India (RBI) Governor, Urjit patel, announced his resignation. This was a very big shock for the country. In his resignation letter, the Governor said he decided to resign for personal reasons. According to various sources, the Governors resignation was because of the Central government’s continuous interference in RBI matters.
Raghuram Rajan, Urjit patel’s predecessor also faced similar troubles. Rajan had refused to accept the government's demonetisation plan.
Urjit Patel was selected by the BJP for the post of Governor. The government had been requesting lenient rules towards their loans. The RBI Deputy Governor Viral Acharya in October, made a speech and warned the government to stop interfering in RBI matters.
In November this year, Urjit Patel met the Prime Minister to discuss the problems between the Central government and the RBI.
The government wanted to make changes in the RBI which would reduce the powers of the Governor. This would make it easy for the government to get their demands. The Governor resigned 3 days before a very important RBI Board meeting.
Immediately after his resignation, the Rupee saw it all time low and the sensex fell by 750 points. Experts feel the market will continue to be volatile for a few days.
The Central government announced that the next RBI chief will be selected by a high-level panel. Once the name has been finalised, Prime Minister Narendra Modi will confirm the appointment.
