New Delhi : RBI Deputy Governor Viral Acharya has resigned 6 months before his term ends raising speculations of controversy within the office.
Viral Acharya will be returning to New York University Stern School of Business (NYU Stern) in August instead of February 2020. While RBI is yet to issue an official announcement confirming the same, inside sources have confirmed that Acharya has resigned.
Viral Acharya, who was appointed as the RBI deputy governor by government on January 23, 2017 for a three year term had earlier raised concern over the importance of RBI’s independence in October 2018.
At the time, the RBI and government had been engaged in a cold tussle over various issues pertaining to the former’s excess reserves.
The RBI under former governor Urjit Patel was reluctant in releasing excess funds-something that the government had pitched in the middle of a liquidity crisis due to a collapse of the shadow-banking or non-banking financial companies (NBFC) sector.
However, neither Urjit Patel nor Viral Acharya was happy with the government’s alleged intervention into key decision making of the RBI. A few months later in December, Urjit Patel resigned from his post.
Acharya’s resignation could be an indication that some differences still continue to exist between the apex bank and government in terms of decision making.