Corporate

By not quitting, Patel acted with maturity: Former RBI Guv

Reserve Bank of India (RBI) governor Urjit Patel is seen to have acted with maturity and restraint by not resigning in the wake of the central bank’s spat with the government, a former RBI governor and a policymaker told. The government’s move to withdraw the sword of the never-used Section 7 hanging over the RBI is being interpreted as a well thought-out measure to defuse the tension as pressing on with directions to the central bank would have possibly forced Patel to resign. The consequences of his resignation would have been negative for the markets and the overall economy ahead of the 2019 general elections. The former policymaker, quoted earlier, said, Patel did not let his ego come before national interest. Imagine the turmoil in the markets had he resigned by remaining stubborn. If he had quit, two of the deputy governors would have also resigned and it would have been chaos. He added, North Block was aggressive in its demands. I would say that the entire RBI team as well as the government showed maturity and worked to resolve the issue.

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