The mounting differences between RBI and the Centre may result in the Reserve Bank of India Governor Urjit Patel resigning from his post. According to TV reports, the reason is the sell-off in the rupee and bonds. It is said that the Centre is upset about the rift between the government and the Reserve Bank of India after the RBI Deputy Governor Viral Acharya publicly spoke about the ongoing tussle. According to the Indian Express, senior officials who spoke to news agency Reuters said the government fears it could tarnish the country’s image among the investors. The tenure of RBI Governor is three years and one can opt out before completing it. The tenure can also be extended for the next three years.
Here’s a look at the RBI Governors who did not complete their terms:
Sir Osborne Smith (November 1, 1935, to June 30, 1937)
Sir Osborne Smith was the first governor of the Reserve Bank of India. Before coming to India, he served two decades as a professional banker with the Bank of New South Wales and a decade with the Commonwealth Bank of Australia. He was appointed as the governor in 1935, but due to his opinion on policy issues like the interest and exchange rates he resigned from the post. He, however, did not sign any bank notes during his tenure.
Sir Benegal Rama Rau (July 1, 1949, to January 14, 1957)
Sir Benegal Rama Rau was the fourth and the longest serving Governor and his tenure witnessed the commencement of planning era and innovative initiatives in co-operative credit and industrial finance. He resigned from the post in 1957 following differences with the then Finance Minister TT Krishnamachari.
S Jagannathan (June 16, 1970, to May 19, 1975)
S Jagannathan was the tenth Governor of the Reserve Bank of India. Before being appointed as the Governor, he served as India’s Executive Director at the World Bank. His achievements include expansion of banking offices in pursuance of the objectives of the nationalisation of private banks. He gave up the position to take up the position of the Indian Executive Director at the IMF.
There were times when political changes had an impact on the tenures of RBI Governors. For instance, the 12th Governor KR Puri who was appointed during the Indira Gandhi government had to leave the position in May 1977 after the Janata Party came into power. However, the 17th Governor RN Malhotra got an extension after his term ended but had to leave the post after Chandra Shekhar came into power.