RBI has been rendered headless following Patel's unexpected resignation, with immediate effect.
New Delhi: The government is likely to make an announcement regarding Urjit Patel's successor as Reserve Bank of India's Governor later in the day, Finance Secretary A N Jha said.
RBI has been rendered headless following Patel's unexpected resignation, with immediate effect, on Monday. Patel, who is the first governor since 1990 to step down before his term ends, in a brief statement, cited "personal reasons" for the decision.
The decision to quit comes four days ahead of a crucial meeting of the board of the central bank that could have discussed issues of simmering differences with the government. It is expected that the board meeting may be deferred as there is no regular governor. Speaking to reporters, Jha said, some communication from the government on RBI is expected.
Patel's three-year term was to end in September 2019, and he was eligible for a second term like most of his successors, barring a few like his outspoken predecessor Raghuram Rajan.
A Kenyan national who acquired an Indian citizenship prior to being appointed Deputy Governor of RBI in January 2013, Oxford-trained Patel was initially seen as toeing government line after he backed the November 2016 shock decision to overnight junk 86 per cent of the currency in circulation.