RBI Governor Urjit Patel might resign from his position on November 19 due to health issues and the ongoing spat with the government, reports suggested.
However, an RBI source told Moneycontrol this may not be the case.”November 19 is too close [for him to resign] as the tussle between RBI and government is out in the open, it is highly unlikely that he would move out,” the source said.
The source, who was part of a think tank under former governor Raghuram Rajan, added that although Patel’s deputy had hinted the RBI chief considered resigning, it wouldn’t happen at the November 19 board meeting.
Earlier, Moneylife had reported that as the government and central bank are engaged in a power tussle, there is a chance that Patel could step down. Sources cited by the website pointed out the RBI governor is “not only tired of the fight with the government, but it has also been impacting his health in a big way”.
The RBI has locked horns with the government’s demand for transferring a large chunk of its reserves to the Centre to keep the fiscal deficit in control. It has also opposed injecting more liquidity into the economy to avoid a tussle between housing and finance companies.
On October 26, RBI Deputy Governor Viral Acharya hit out at the government and said there would be severe consequences if the central bank’s independence is hindered with.
