Almost a year after Urjit Patel resigned as the Reserve Bank of India’s (RBI) Governor, Deputy Governor Viral Acharya has quit six months before the end of his term, media reports said on Monday.
Acharya’s quitting has triggered speculation about the government’s interference in RBI. He is the third top official to quit RBI before completing their term. He joined RBI as Deputy Governor in January 2017.
Acharya viewed such steps as putting fiscal discipline into risk and he did not want to be part of “those decisions”, sources said.
RBI’s statement said: “Viral V. 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 RBI beyond July 23, 2019. Consequential action arising from his letter is under consideration.” Acharya has not commented on the matter yet.
To spur the economy, the RBI had cut repo rate by 25 bps to 5.75 per cent in June while switching to an “accommodative” stance, implying that the central bank is amenable to further cuts.