Urjit Patel’s resignation will be bad for economy, warns Subramanian Swamy; gives this advice to PM Modi

By: |
Updated: December 10, 2018 8:48:31 PM

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.

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.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.

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. He advised Prime Minister Narendra Modi to call Urjit Patel and dissuade him from leaving in the larger public interest.

He also sad that Urjit Patel should have stayed till July, until the next governor came to power.

ALSO READ: Urjit Patel resigns as RBI governor; cites personal reasons

“His resignation will be bad for our economy, RBI & govt. He should at least stay till July until the next govt comes to power. A PM should call him and find out the reason, and dissuade him from leaving in the larger public interest,” Subramanian Swamy told news agency ANI.

Urjit Patel on Monday resigned from his position with immediate effect citing personal reasons. However, his decision to resign followed a series of event that was seen as an effort to undermine the autonomy of the RBI. Reportedly, the government wanted RBI to become board-governed, which meant higher decision making powers in the hands of government representatives at the board.

ALSO READ: Raghuram Rajan reacts to Urjit Patel’s resignation; says ‘Dr Patel has made a statement’

The government earlier invoked Section 7 of the RBI Act to initiate consultation on several contentious issues such as lending restrictions on weaker banks and RBI’s reserves. The differences between the government and the RBI came to light when deputy governor Viral Acharya, in a strongly worded speech, said that the governments that undermine the central bank’s autonomy invite the wrath of the market.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Interim Budget 2019: Who are the people behind Union Budget? How is it kept a secret?
2Modi government cuts Power-for-All target as deadline nears
3Important for Indian govt to heed RBI’s message on financial stability, says IMF Chief Economist