Breaking News RBI governor Urjit Patel resigns , Economy of India to be hit say critics ?
In a new development RBI Governor Urjit Patel has resigned from his post .This shocking news comes after months of speculation between tensions within the Government of India and the Reserve Bank of India .
The NDA government under Narendra Modi has faced a growing criticism about his government's interference with financial institution including that of the Reserve Bank of india
Recently the former Chief Economic advisor Arvind Subramanium had also criticised the move of the Modi sarkar on demonetisation .
In his resignation letter Urjit Patel wrote "On account of personal reasons, I have decided to step down from my current position (RBI Governor) effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years."
The rift between the RBI and the Modi government turned ugly after Patel's deputy, Viral Acharya, said that attempts to undermine the central bank's autonomy could prove to be 'potentially catastrophic.'
What inflamed the tension further was the statement by Union Finance Minister Arun Jaitley, who blamed the central bank for failing to stop a lending spree during 2008-2014 that left banks with $150 billion of bad bank loans.
The Finance Ministry till filing of this report could not be reached for comments on this development .But experts are saying that this move of the RBI Governor could affect the overall health of the economy and will also hurt India's image of a growing economic giant .
We do not see good ahead after this move said one Dalal street broker anticipating a stock market crash in the days ahead.
It maybe said that this could be NDA's governments biggest challenge in the build up to the 2019 Lok Sabha elections with farmer distress and consolidation of OPEC members amid India growing concern of growing petrol prices