RBI Deputy Governor Viral Acharya quits citing 'unavoidable personal reasons'

RBI Deputy Governor Viral Acharya. File Photo   -  Reuters

In charge of the monetary policy dept, Acharya's resignation comes 6 months before his term is to end

Mumbai, June 24

Reserve Bank of India Deputy Governor Viral Acharya has put in his papers about six months ahead of the completion of his term.

His resignation comes about six months after Urjit Patel quit as RBI Governor. Patel then cited "personal reasons" for stepping down (about nine months ahead of the completion of his three-year term), amidst reports of friction between the RBI and the Government on a host of issues, including those relating to central bank autonomy, transferring RBI’s excess reserves to the government and relaxing the Restrictive Prompt Corrective Action (PCA) framework for 11 state-owned banks.

The RBI, in a statement, said: "A few weeks ago, Dr. Acharya submitted a letter to the RBI informing that due to unavoidable personal circumstances, he is unable to continue his term as a Deputy Governor of the RBI beyond July 23, 2019. Consequential action arising from his letter is under consideration of the Competent Authority."

Acharya, who is a key member of the rate-setting monetary policy department, had warned in October 2018 that governments that do not respect the central bank's independence will sooner or later incur the wrath of financial markets, ignite fire, and come to rue the day they undermined an important regulatory institution.

Read more: Urjit Patel quits as Reserve Bank Governor

 

Published on June 24, 2019

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