‘There must be something on which he must have differed with govt’

MUMBAI: Urjit Patel’s decision to step down as the Mint Road boss may ostensibly have to do with his personal priorities, but the manner of his exit four days before a scheduled meeting of the central bank’s board has fueled speculations the government would do well to scotch immediately.

“I personally think that even though he says that the resignation is for personal reasons, there must be something on which he must have differed with the government that has triggered the resignation,” former Reserve Bank of India (RBI) governor C Rangarajan said. “The resignation of the governor has an impact on the financial markets and also impacts sentiments. Therefore, the government should act immediately…”

Patel’s decision to quit abruptly ahead of the RBI board meeting, scheduled on December 14, came just after the close of market hours.


Patel’s decision came as a surprise to his predecessor.

“I am surprised and saddened by the resignation of Urjit Patel. I had thought in the last board meeting they had resolved the issues and, probably, the rest of the issues could be resolved in the next board meeting. But apparently something has happened which triggered his resignation. It is unfortunate that the issues between the RBI and the government could not be amicably resolved,” Rangarajan said.