Urjit Patel’s resignation: Next incumbent RBI Governor will have the task of restoring Central Bank’s credibility, said former Central Bank Governor D Subbarao.
Urjit Patel’s resignation: Next incumbent RBI Governor will have the task of restoring Central Bank’s credibility, said former Central Bank Governor D Subbarao. The government should choose a candidate who can command respect from the market, he also told CNBC TV18. Commenting on the next RBI Governor’s credentials, he said, “even a non-PhD economist can do well as RBI Governor.”
Considering the maturity that the government holds, it will do serious introspection on RBI Governor Urjit Patel’s resignation, said former Central Bank Governor D Subbarao. “…. can’t make a presumption that government won’t introspect on Governor Patel’s exit,” he also told CNBC TV18 in an interview. Answering what may have triggered Urjit Patel’s sudden decision to resign, he said there was a possibility of him resigning in realm of speculation for a while. “Patel seems to have pushed beyond the level of comfort,” he added.
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Sharing his views on the RBI Board, he said that the board needs to have independent participants with no vested interests. “RBI Board not an appropriate forum for taking policy decisions and it should advise the Governor regarding policy issues,” he added.
Meanwhile, after days of speculation, Urjit Patel finally stepped down the post of Reserve Bank of India (RBI) Governor on Monday. Urjit Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992. Interestingly, the next RBI board meeting was scheduled for December 14. In the past few months, both RBI and Modi government have been locking horns on issues ranging from interest rates to reserves.