RBI Governor’s resignation: This is how Major Leaders responded

Reserve Bank of India Governor Urjit Patel stepped down from his post yesterday citing “personal reasons”.

On account of personal reasons, I have decided to step down from my current position effective immediately,” Mr Patel said in his letter”.

There was a crucial board meeting to come up on Friday and Urjit Patel has resigned well ahead of that. Here is how the major leaders in the country responded to his resignation:

Narendra 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”.

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.”

Raghuram Rajan(Former RBI Governor)

I think Dr Patel has made a statement. I think this is the ultimate statement a regulator or a civil servant can make. I think his statement should be respected. We should go into the details on why there was an impasse which forced him to take this ultimate decision and I think this is something all Indians should be concerned about because the strength of our institution is really important”.

P Chidambaram

“Good he quit before another humiliating meeting”

Yashwant Sinha

Quite clearly the resignation of Urjit Patel shows that nothing has changed … Things were quite as bad as they were before. The resignation is a clear sign of the government trying to interfere with the working of the RBI”.

S Gurumurthy, RBI board member

Surprised at the news that RBI governor has resigned. The previous meeting was held in such cordial atmosphere that it comes as a shock. All directors said media had created a wrong perception while inside it was totally different. That makes it even more surprising.”

Y H Malegam, former RBI board member

Very unfortunate … It’s a combination of what perhaps has been going on for a long time”

One of the factors that could be affecting this is the fear that the (RBI) board is no longer independent … therefore the governor maybe feeling the ability to function is in some sense being restricted.”