On account of personal reasons, I have decided to step down from my current position effective immediately, said Urjit Patel.
Reserve Bank of India (RBI) governor Urjit Patel on Monday said that he has decided to “step down” from his current position effective immediately. The governor’s decision to resign came five days after the bi-monthly policy meeting, in which he refused to answer questions on the controversies surrounding the RBI’s autonomy.
“On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years,” Urjit Patel said in a statement.
“The support and hard work of RBI staff, officers and management has been the proximate driver of the Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future,” he added.
Media reports were rife with speculation of Urjit Patel’s resignation following the government’s 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, RBI’s capital reserves, and liquidity problem in NBFCs.
Urjit Patel was appointed the 24th governor of the RBI on September 2016 for a three-year term. He was heavily criticised for his silence on demonetisation, which was announced just two months after he took the position. Urjit Patel earlier served as a deputy governor of the RBI and was elevated to the governor’s position after Raghuram Rajan’s tenure ended.