After a fractious faceoff with the Narendra Modi-led government\u00a0over the liquidity crunch in the economy,\u00a0the RBI Governor Urjit Patel resigned on Monday from his post with immediate effect citing 'personal reasons'. Urjit Patel's resignation, which came 10 months ahead of his term, is\u00a0being seen a result of trust deficit between the central bank and the ruling government. According to many experts, this development can trigger a major crisis in the politico-economic sphere of the country. In the recent past, several media reports said that Urjit Patel could resign after the government\u2019s decision to invoke the never-used-before special powers under Section 7 of the RBI Act to initiate consultation on a range of issues such as the Prompt Correct Action (PCA) norms, among others.\u00a0\u00a0Urjit Patel was appointed the 24th governor of the RBI on September 2016 for a three-year term and was heavily criticised for his silence on demonetisation, which was announced just 2 months after his appointment. Check Financial Express' continuing coverage on Urjit Patel's resignation as RBI Governor What happens now Urjit Patel resigns as RBI Governor; now, what\u2019s next? Even as most saw Reserve Bank of India and Modi government reaching truce, RBI Governor Urjit Patel tendered his resignation on Monday. He cited \u2018personal reasons\u2019 behind the exit. However, the sudden decision to quit has raised a couple of pressing worries. First, how will the stock markets react? Second, and the most important, who will be the next RBI Governor? After Urjit Patel, who? This senior most deputy governor may be made interim head Urjit Patel, who had a run in with the government over autonomy of the central bank, resigned Monday from his post citing "personal reasons", creating a crisis in the RBI. Surjit Bhalla resigns from PMEAC; PM Modi loses another lieutenant after Urjit Patel Prime Minister Narendra Modi has accepted the resignation of economist Surjit Bhalla as part-time member of his Economic Advisory Council (EAC), the PMO said on Tuesday. Moody\u2019s on Urjit Patel: Govt attempt to curtail RBI Independence credit negative Patel's resignation came just 4 days ahead of the December 14 meeting of the Reserve Bank that could have discussed issues of simmering differences with the government. Hope for smooth transition with approach acceptable to all: India Inc on RBI Governor\u2019s resignation India Inc Monday said it hopes for a smooth transition and \u201can approach acceptable to all\u201d after RBI Governor Urjit Patel\u2019s resignation, citing liquidity and credit offtake issues in the financial sector. Patel, who had a run in with the government over autonomy of the central bank, Monday resigned from his post. Opinion RBI reduced to a government department Urjit Patel\u2019s resignation shows up the govt in a poor light, of one unwilling to accept an independent RBI Governor. Urjit Patel: The vigilant owl flies out in protest, as the nest comes under attack Patel's three-year tenure was scheduled to end early September 2019 and he had hinted at rate cuts in the future if the RBI continues to see a dip in inflation. Markets in shock Urjit Patel\u2019s resignation comes at a sensitive time, to dampen sentiments, says DBS The immediate resignation of Reserve Bank of India Governor Urjit Patel comes at a sensitive time, when negotiations with the government to iron out differences on key regulatory aspects are ongoing, the Singapore banking group, DBS, said Tuesday. Urjit Patel exit adds to India\u2019s risk as PM Modi gears up for vote Urjit Patel\u2019s shock exit as governor of the Reserve Bank of India dealt investors another bout of monetary policy uncertainty when they were already bracing for an electoral test of Prime Minister Narendra Modi. Urjit Patel\u2019s resignation roils nervous India markets Urjit Patel quit on Monday citing personal reasons, a decision that some investors took as a new fissure in the Reserve Bank of India\u2019s relationship with Prime Minister Narendra Modi\u2019s government. Urjit Patel resignation: Expect markets volatility for some time While both the stock and markets could settle down should a new RBI governor be appointed soon, the fact is India\u2019s markets have been performing poorly in 2018, being hugely over-valued even as corporate earnings have been very ordinary. Sebi, exchanges step up vigil as volatility looms over state poll results, RBI Governor\u2019s exit Capital markets regulator Sebi and the stock exchanges have stepped up their surveillance systems to keep manipulative forces in check amid an extreme volatility expected on Tuesday due to the sudden resignation of RBI Governor Urjit Patel and the state assembly results. Here's what transpired Urjit Patel resigns: Govt\u2019s push for more power to RBI board was the trigger In a terse statement issued after the end of market hours, Patel, the 24th RBI governor, who had 268 days to go before his three-year term ends on September 4 2019, cited \u2018persons reasons\u2019 for the decision. Urjit Patel resignation: Power erosion may have weighed on RBI chief\u2019s exit decision Urjit Patel\u2019s surprise resignation as the RBI governor seems to have been precipitated by the long-simmering tussle between the government and the central bank over a raft of vexed issues. Urjit Patel\u2019s resignation: 7 flashpoints between RBI and Modi government Urjit Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992. In the past few months, both RBI and Modi government have been locking horns on issues ranging from interest rates to reserves. Urjit Patel resigns as RBI governor; cites personal reasons On account of personal reasons, I have decided to step down from my current position effective immediately, said Urjit Patel. Conflict between RBI and government not new: Here\u2019s what happened in past The longest-serving RBI governor to resign was Benegal Rama Rau (July 1, 1949 to January 14, 1957) who was forced to quit after differences with the then finance minister TT Krishnamachari. What PM Narendra Modi said Here\u2019s what PM Modi said about Urjit Patel after his resignation as RBI governor Urjit Patel steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability, PM Modi said. Politicians jump in to react Rahul Gandhi on Urjit Patel\u2019s exit: We have to stop BJP\u2019s assault on institutions The opposition seized the opportunity to launch a fusillade at the central government accusing it of assaulting and undermining India\u2019s institutions, from CBI to RBI, and resolved to \u201cwork together to defeat the BJP, RSS combination.\u201d RBI Governor Urjit Patel\u2019s resignation \u2018severe blow\u2019 to nation\u2019s economy, says former PM Manmohan Singh Former prime minister Manmohan Singh Monday termed RBI Governor Urjit Patel\u2019s resignation as \u201cvery unfortunate\u201d and said it was a \u201csevere blow\u201d to the country\u2019s economy. Singh said it will be \u201cfoolhardy\u201d to diminish institutions for short-term political gains. Urjit Patel eased out by Centre to bring in someone \u2018more pliable\u2019, says Arvind Kejriwal Delhi Chief Minister Arvind Kejriwal on Monday alleged that RBI governor Urjit Patel was eased out by the BJP-led NDA government at the Centre to bring in a \u201cmore pliable\u201d person to fill the post. \u201cRBI governor Urjit Patel has been eased out since he refused to allow the Modi govt to plunder Rs three lakh crore of RBI reserves," he said. Urjit Patel\u2019s resignation will be bad for economy, warns Subramanian Swamy; gives this advice to PM Modi Senior BJP leader and Rajya Sabha member Subramanian Swamy on Monday warned that Urjit Patel's resignation as Reserve Bank of India (RBI) governor will be bad for the economy. RBI Governor\u2019s \u201cforced\u201d exit blot on India\u2019s monetary and banking system: Congress BJP government has unleashed a defacto financial emergency. The country's reputation and credibility is now at stake," senior Congress leader Ahmed Patel said. Raghuram Rajan weighs in Raghuram Rajan reacts to Urjit Patel\u2019s resignation; says \u2018Dr Patel has made a statement\u2019 Raghuram Rajan on Monday reacted to Urjit Patel's decision to step down as Reserve Bank of India (RBI) governor and said that he has made a statement that the autonomy of the central bank should not be undermined.