Amid rift between the Reserve Bank of India and the Centre, RBI chief Urjit Patel is likely going to resign from his post today, said a report.
A source from RBI told CNBC-TV18, “RBI governor may consider resigning. All options on the table.” Another official told MyNation.com that Patel would relinquish his post as the head of the top custodian of the country’s banks on his own volition. CNBC-TV18 also quoted sources as saying that the government has initiated consultations with RBI under Section 7 of the RBI Act. The provision reportedly allowed the government to issue directions to the RBI “on matters of public interest”.
Finance Minister Arun Jaitley on Tuesday criticised the Reserve Bank of India for failing to check indiscriminate lending during 2008 and 2014 that has led to the present bad loan or NPA crisis in the banking industry. This came after RBI Deputy Governor Viral V Acharya in a speech on Friday stated that undermining the central bank’s independence could be “potentially catastrophic”. This was seen as a veiled reference to RBI pushing back hard against government pressure to relax its policies and reduce its powers.