Urjit Patel quits as RBI Governor with immediate effect

Amidst the unprecedented feud with the government over how much autonomy should be given for the Reserve Bank of India (RBI) to function, Urjit Patel has stepped down from the post of the Governor with immediate effect.

Patel has however cited personal reasons for his exit from RBI.

"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," he stated.

Patel, whose tenure was supposed to end in 2019, was appointed the 24th governor of the RBI in September for a three-year term.

The RBI and the government have been at loggerheads since October. The government was seen to have been ramping up pressure on the bank on three key issues that included excess reserves in the bank.

The RBI has an excess reserve of Rs. 3.6 lakh crore, which the bank contends that keeping it is essential in view of possible emergencies. The government however is of the view that that excess reserve can be used for development, according to sources.