New Delhi: Former prime minister Manmohan Singh has said that the resignation of Urjit Patel is very unfortunate and a severe blow to the nation’s economy.
Patel resigned from the post of RBI Governor on Monday, citing personal reasons. He had issues with the central government over autonomy of the central bank. The former RBI Governor resigned four days ahead of a pivotal meeting of the board of the central bank that could have discussed issues of simmering differences with the government.
“It is with great sadness that I received the news of the resignation of the Governor of the Reserve Bank of India, Urjit Patel,” Singh said. “Patel’s sudden resignation, at a time when the Indian economy is faced with many headwinds, is very unfortunate and is a severe blow to the nation’s economy,” Singh said and added that he hoped the RBI Governor’s sudden resignation is not an indication of Prime Minister Narendra Modi-led government’s attempts to destroy the institutional foundations of India’s USD 3 trillion economy.
Recalling RBI Deputy Governor Viral Acharya’s concerns about the center’s intent to raid the capital reserves of the RBI for fiscal purposes, Singh said, “I hope the resignation of the Governor is not a sign that this may soon become a reality.”
“Building institutions take a long time and effort but they can be destroyed in a whimper. It is institutions such as the RBI, among many others, that have served as the edifice of our great nation’s progress since independence. It will be foolhardy to diminish these institutions for short-term political gains,” said the former prime minister.
Patel, 55, had the shortest tenure as the Governor of the central bank since 1992. He took over as the 24th Governor on September 5, 2016. His three-year term was to end in September 2019, and he was eligible for a second term.
Prime Minister Narendra Modi has said that Patel will be missed immensely.
