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This article is more than 2 year old.

Here is what experts have to say about RBI governor Urjit Patel's resignation

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RBI governor Urjit Patel resigned on Monday citing "personal reasons", a statement issued by the Reserve Bank of India (RBI) said on Monday.

Here is what experts have to say about RBI governor Urjit Patel's resignation
RBI governor Urjit Patel resigned on Monday citing "personal reasons", a statement issued by the Reserve Bank of India (RBI) said on Monday.
Here is what experts have to say about RBI governor Urjit Patel's resignation on Monday.
Commentary
Viktor Szabo, Aberdeen Standard Investments
"We had this row between the government and the central bank over independence, we thought it had faded but it seems not."
"Perhaps it plays into the pre-election campaign for next year, that is something that we will be watching really closely"
Sandip Sabharwal, fund manager and investment adviser
"There can be no positive spin given to the resignation of Urjit Patel. This is a failure of the current government in handling a systematically important institution. It is unprecedented and is a clear reflection of the interference in the operations of RBI."
R. Sivakumar, head of Fixed Income, Axis Mutual Fund
"I think typically when central bank governors or leaders anywhere in the world quit that potentially can have significant effect on the currency and bond markets. I think it's something that we'll be watchful for tomorrow. I think tomorrow and over the next few days we can expect heightened volatility in the markets."
"For tomorrow, markets certainly will be concerned unless there is further clarifications that come through tonight. Otherwise it is likely that there will be some amount of volatility."
A Prasanna, head of research, ICICI Securities Primary Dealership, Mumbai
"The news is definitely a big surprise. The timing just before this week's board meeting suggests that there’s still a huge gap between government and RBI positions on key issues. Markets will now hope that the government has a plan of action ready so as to restore calm."
Ashwani Mahajan, chief of an economic wing of Hindu Nationalist Rashtriya Swayamsevak Sangh
"I think it was unexpected, this is something not on expected lines. Our country runs on a system and it is not individual centric. Board of RBI comprises educated and learned people, there are economists on the board. They all are also opinionated. The board is not just a rubber stamp
Anjali Verma, economist, Phillipcapital India, Mumbai
"This comes as a surprise, and should an adverse impact on investor confidence."
Raghuram Rajan, former RBI governor
“I think Dr Patel has made a statement. I think this is the ultimate statement a regulator or a civil servant can make. I think his statement should be respected. We should go into the details on why there was an impasse which forced him to take this ultimate decision and I think this is something all Indians should be concerned about because the strength of our institution is really important …"
Lakshmi Iyer, chief investment officer, Fixed Income, Kotak Mahindra AMC
"Markets were not prepared for this. Tomorrow is also the political uncertainty day. So, if that saves then you'll see some saving grace. Otherwise, I don't think markets may take this very kindly, especially dollar-rupee."
"I was not expecting this. From a markets standpoint, it might rebound, that's a different thing, but for a knee-jerk reaction, I think it'll be negative for dollar-rupee and, therefore, logically for bonds also. We'll have to wait and watch."
Yashwant Sinha, former finance minister
"Quite clearly the resignation of Urjit Patel shows that nothing has changed ... Things were quite as bad as they were before. The resignation is a clear sign of the government trying to interfere with the working of the RBI."
Y H Malegam, former RBI board member
"Very unfortunate ... It's a combination of what perhaps has been going on for a long time"
"One of the factors that could be affecting this is the fear that the (RBI) board is no longer independent ... therefore the governor maybe feeling the ability to function is in some sense being restricted."
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