Explained: What led to RBI deputy Governor Viral Acharya’s resignationhttps://indianexpress.com/article/explained/what-led-to-rbi-deputy-governor-viral-acharya-resignation-5797160/

Explained: What led to RBI deputy Governor Viral Acharya’s resignation

Acharya is a strong votary of Central bank’s independence and differed with Governor Shaktikanta Das on inflation issues and repo rate reduction in monetary policy reviews this year.

RBI deputy Governor Viral Acharya with former RBI Governor Urjit Patel.

Reserve Bank Deputy Governor Viral Acharya has resigned from his post, six months before the scheduled end of his term “due to unavoidable personal circumstances”.

Confirming his resignation, the RBI said, “A few weeks ago, 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 the RBI beyond July 23, 2019.”

Why did Viral Acharya quit?

Acharya is a strong votary of Central bank’s independence and differed with Governor Shaktikanta Das on inflation issues and repo rate reduction in monetary policy reviews this year.

Last year, the then RBI Governor Urjit Patel had differed with the government on several issues, including transferring the surplus to the government, more credit flow to small units, easing of curbs on public sector banks and funding support to the NBFC sector. Acharya had supported Patel in his feud with the government last year.

After resignation, what?

Acharya will be returning to New York University as CV Starr Professor of Economics. He was not expecting another term as he had supported former Governor Urjit Patel in RBI’s feud with the Government on several issues in late 2018, said a top-level source.