The Reserve Bank of India (RBI) governor Urjit Patel, who had a run in with the government over autonomy of the central bank, on Monday resigned from his post.
In a brief statement, Patel said he has decided to step down with immediate effect. He, however, did not specify the reason for the decision. Patel was appointed the 24th Governor of the RBI on September, 2016 for a three-year term.
Here is Patel said on the burning economic issues in India.
Patel said demonetisation imposed in 2016 probably had no more than a temporary effect on Asia’s third-largest economy, as lending continued to flow.
Cash Reserve Ratio (CRR)
The reduction in CRR is not in the ambit of the Monetary Policy Committee (MPC).
RBI vs government
"The RBI is something like a seat belt. As a driver, the driver being the government, it has the possibility of not putting on a seat belt but of course if you do not put on your seat belt you get into an accident and the accident can be quite severe," says Patel.
The economy would get a boost from oil prices cooling off from four-year highs and asserted that the fundamentals were robust, Patel said.
First Published: IST