Urjit Patel resigns after spat with Centre! PM Narendra Modi reacts to shock move by RBI Governor

Urjit Patel resigns: Reserve Bank of India (RBI) governor Urjit Patel has resigned today citing personal reasons. Patel said that it was 'a privilege and honour to serve in the Reserve Bank of India'.

"On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years. The support and hard work of RBI staff, officers and management have been the proximate driver of the Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future," said Patel in a statement.

Prime Minister Narendra Modi took to Twitter to say that Urjit Patel is 'an economist of a very high calibre with a deep and insightful understanding of macro-economic issues'.

"Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability," said Modi.

Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability.

— Narendra Modi (@narendramodi) December 10, 2018

Modi added that Patel leaves behind a great legacy.

"Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely," added PM Modi.

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Reacting to Patel's resignation, Finance Minister Arun Jaitley said that it was a pleasure for him to benefit from the scholarship of the governor.

"The Government acknowledges with deep sense of appreciation the services rendered by Dr. Urjit Patel to this country both in his capacity as the Governor and the Deputy Governor of The RBI. It was a pleasure for me to deal with him and benefit from his scholarship," said Jaitley in a tweet.

The Government acknowledges with deep sense of appreciation the services rendered by Dr. Urjit Patel to this country both in his capacity as the Governor and the Deputy Governor of The RBI. It was a pleasure for me to deal with him and benefit from his scholarship. (1/2)

— Arun Jaitley (@arunjaitley) December 10, 2018

Jaitley wished many more years of public service to the governor.

"I wish Dr. Patel all the very best and many more years of public service," said Jaitley.

Notably, Urjit Patel and Centre were having a very public spat over an independent role of the central bank. The main theme around it was that Centre wanted repo rate cut, but Patel was unwilling citing inflationary threat. This ensured that the liquidity situation in country remained tight, hurting economic growth.

Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.