The Indian government appointed career central banker Michael Patra as one of the <a href="https://www.wionews.com/business-economy/owing-to-rising-food-prices-indias-december-retail-inflation-surges-to-735-274063">Reserve Bank of India's</a> four deputy governors for a three-year term, it said in a statement on Tuesday.

He will fill a vacancy left by former deputy governor Viral Acharya, who resigned last June, six months before the scheduled end of his term in office.

Acharya cited personal reasons for his departure but had previously clashed with Prime Minister <a href="https://www.wionews.com/india-news/p-chidambaram-attacks-modi-govt-over-sliding-economy-and-unemployment-274135">Narendra Modi's</a> government over an erosion of the central bank's independence.

He was the third key senior central bank official under the Modi government to resign, following the departures of former RBI governors Raghuram Rajan in 2016 and Urjit Patel in December 2018.

Patra, currently an executive director at the RBI, had applied for a deputy governor's post in 2017.

He has been a part of the central bank's monetary policy committee since its inception and has long been viewed as a monetary policy hawk.

However, since Governor Shaktikanta Das took office in December, Patra has voted for three successive rate cuts and has said the economy needs fiscal support in the current environment.

"It's an excellent decision. He is an accomplished monetary economist with not just strong academic credentials but also has a rich understanding of ground-level economic realities of India. This is the best choice in my opinion," said <a href="https://www.wionews.com/business-economy/indias-october-retail-inflation-rises-to-462-per-cent-261864">Rupa Rege Nitsure</a>, chief economist at L&amp;T Financial Holdings.

The Indian government appointed career central banker Michael Patra as one of the Reserve Bank of India's four deputy governors for a three-year term, it said in a statement on Tuesday.

The Indian government appointed career central banker Michael Patra as one of the Reserve Bank of India's four deputy governors for a three-year term, it said in a statement on Tuesday. He will fill a vacancy left by former deputy governor Viral Acharya, who resigned last June, six months before the scheduled end of his term in office. Acharya cited personal reasons for his departure but had previously clashed with Prime Minister Narendra Modi's government over an erosion of the central bank's independence. He was the third key senior central bank official under the Modi government to resign, following the departures of former RBI governors Raghuram Rajan in 2016 and Urjit Patel in December 2018. Patra, currently an executive director at the RBI, had applied for a deputy governor's post in 2017. He has been a part of the central bank's monetary policy committee since its inception and has long been viewed as a monetary policy hawk. However, since Governor Shaktikanta Das took office in December, Patra has voted for three successive rate cuts and has said the economy needs fiscal support in the current environment. "It's an excellent decision. He is an accomplished monetary economist with not just strong academic credentials but also has a rich understanding of ground-level economic realities of India. This is the best choice in my opinion," said Rupa Rege Nitsure, chief economist at L&T Financial Holdings.

Government appoints Michael Patra as RBI Deputy Governor

Urjit Patel stepped down as the Reserve Bank of India (RBI) Governor because of personal reasons and had been telling the Prime Minister for some time about his decision to resign, said <a href="http://www.wionews.com/india-news/2019-lok-sabha-polls-will-be-janta-versus-gathbandhan-pm-modi-187752">Prime Minister Narendra Modi</a> on Tuesday.

"I am revealing for the first time, he (Urjit Patel) was telling me about this for the past 6-7 months before his resignation. He gave it even in writing. He wrote to me personally," <a href="http://www.wionews.com/india-news/those-accusing-me-in-rafale-deal-are-weakening-indian-security-forces-pm-modi-187774">Prime Minister Modi revealed</a>.

<a href="http://www.wionews.com/india-news/surgical-strikes-decision-was-a-big-risk-but-i-was-more-concerned-about-safety-of-soldiers-pm-modi-187741">Also read:&nbsp;Surgical strikes decision was a 'big risk' but I was more concerned about </a><a href="http://www.wionews.com/india-news/surgical-strikes-decision-was-a-big-risk-but-i-was-more-concerned-about-safety-of-soldiers-pm-modi-187741">safety</a><a href="http://www.wionews.com/india-news/surgical-strikes-decision-was-a-big-risk-but-i-was-more-concerned-about-safety-of-soldiers-pm-modi-187741"> of soldiers: PM Modi</a>

Patel resigned in December from his post citing "personal reasons" amidst reports of a rift between the RBI and the government. Prime Minister Modi, after Patel`s resignation, tweeted that the RBI Governor left behind a "great legacy."

The Prime Minister further dispelled the opposition`s criticism that Patel was made to leave.

"No such question arises. I acknowledge that Patel did a good job as RBI Governor," Prime Minister Modi added.

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Stressing that institutions like CBI and judiciary are paramount to his government, the Prime Minister stressed that the opposition Congress party has no right to criticise the BJP by saying that the government weakened such institutions in the country.

"Congress has no right to speak on this issue. Against the PM and PMO, the NAC (National Advisory Council) was formed. What kind of empowerment of the PMO was this? Cabinet takes such a big decision and a big leader tears that Cabinet decision at a press conference. What kind of respect is for an institution?", questioned PM Modi.

"Coming to judiciary, they openly said that we will decide judiciary on the basis of ideology and senior judges were shown the door and junior judges were promoted. And you are talking about institutions? In the same RBI, several times Governors were forced to leave before their term expired. You called Planning Commission people a bunch of jokers," the Prime Minister added.

Prime Minister Modi cleared the air over the government removing the two men at the top of CBI.

In October, CBI Director Alok Verma and his deputy Rakesh Asthana, were relieved of their duties pending an inquiry, after each accused the other of corruption, following which the government sent them on leave, calling it an "extraordinary and unprecedented" situation.

''When CBI internal personal matter came to light, they were both asked to go on leave legally. Because institution is paramount for us," stressed the PM while speaking to ANI.

Opposition parties, especially the Congress, have in recent times, criticised the BJP-led Narendra Modi government of misusing the Enforcement Directorate for political vendetta, often dubbing it as Embarrassment Directorate. Prime Minister, however, allayed the criticism.

"How are these people saying this? Recently, Sohrabuddin judgement came. Just read that judgement. See how institutions were misused. Accusations on us is that Modi is not taking action against these people. And you are saying this is vendetta. ED is doing is job professionally. From a foreign country, a razdaar (confidante) has been brought in custody of India. Should not every Indian be proud of it?", said the Prime Minister, while referring to Christian Michel, the alleged middleman in the Rs 3,600-crore AgustaWestland VVIP chopper deal.

Michel, a UK citizen, was extradited to India from the UAE last month in connection with the case and was respresented by lawyer Aljo K Joseph, who happened to be a Congress party leader but was shunted after controversy over his affiliation erupted.

"If a Congress worker turns up to be Christian Michel`s lawyer, then it is a cause for worry. The countrymen should be proud that razdaar has come, now there will be proper inquiry under legal scrutiny and the truth will come out. Instead of that, you are sending lawyers from your party to support him Michel. This is a matter of concern," Prime Minister added.&nbsp;

Urjit Patel stepped down as the Reserve Bank of India (RBI) Governor because of personal reasons and had been telling the Prime Minister for some time about his decision to resign, said Prime Minister Narendra Modi on Tuesday.

Urjit Patel stepped down as the Reserve Bank of India (RBI) Governor because of personal reasons and had been telling the Prime Minister for some time about his decision to resign, said Prime Minister Narendra Modi on Tuesday. "I am revealing for the first time, he (Urjit Patel) was telling me about this for the past 6-7 months before his resignation. He gave it even in writing. He wrote to me personally," Prime Minister Modi revealed. Also read: Surgical strikes decision was a 'big risk' but I was more concerned about safety of soldiers: PM Modi Patel resigned in December from his post citing "personal reasons" amidst reports of a rift between the RBI and the government. Prime Minister Modi, after Patel`s resignation, tweeted that the RBI Governor left behind a "great legacy." The Prime Minister further dispelled the opposition`s criticism that Patel was made to leave. "No such question arises. I acknowledge that Patel did a good job as RBI Governor," Prime Minister Modi added. × Stressing that institutions like CBI and judiciary are paramount to his government, the Prime Minister stressed that the opposition Congress party has no right to criticise the BJP by saying that the government weakened such institutions in the country. "Congress has no right to speak on this issue. Against the PM and PMO, the NAC (National Advisory Council) was formed. What kind of empowerment of the PMO was this? Cabinet takes such a big decision and a big leader tears that Cabinet decision at a press conference. What kind of respect is for an institution?", questioned PM Modi. "Coming to judiciary, they openly said that we will decide judiciary on the basis of ideology and senior judges were shown the door and junior judges were promoted. And you are talking about institutions? In the same RBI, several times Governors were forced to leave before their term expired. You called Planning Commission people a bunch of jokers," the Prime Minister added. Prime Minister Modi cleared the air over the government removing the two men at the top of CBI. In October, CBI Director Alok Verma and his deputy Rakesh Asthana, were relieved of their duties pending an inquiry, after each accused the other of corruption, following which the government sent them on leave, calling it an "extraordinary and unprecedented" situation. ''When CBI internal personal matter came to light, they were both asked to go on leave legally. Because institution is paramount for us," stressed the PM while speaking to ANI. Opposition parties, especially the Congress, have in recent times, criticised the BJP-led Narendra Modi government of misusing the Enforcement Directorate for political vendetta, often dubbing it as Embarrassment Directorate. Prime Minister, however, allayed the criticism. "How are these people saying this? Recently, Sohrabuddin judgement came. Just read that judgement. See how institutions were misused. Accusations on us is that Modi is not taking action against these people. And you are saying this is vendetta. ED is doing is job professionally. From a foreign country, a razdaar (confidante) has been brought in custody of India. Should not every Indian be proud of it?", said the Prime Minister, while referring to Christian Michel, the alleged middleman in the Rs 3,600-crore AgustaWestland VVIP chopper deal. Michel, a UK citizen, was extradited to India from the UAE last month in connection with the case and was respresented by lawyer Aljo K Joseph, who happened to be a Congress party leader but was shunted after controversy over his affiliation erupted. "If a Congress worker turns up to be Christian Michel`s lawyer, then it is a cause for worry. The countrymen should be proud that razdaar has come, now there will be proper inquiry under legal scrutiny and the truth will come out. Instead of that, you are sending lawyers from your party to support him Michel. This is a matter of concern," Prime Minister added.

Urjit Patel was telling me about resignation for the past 6-7 months: PM Modi

The outgoing year marks a watershed in the annals of the country’s apex bank as the Reserve Bank of India (RBI) turned out to be a tussling ground for its governor and the government.

The denouement came when the soft, scholarly and self-effacing twenty-fourth governor of the central bank, Urjit Patel, called it quits on December 10 and the government lost little time in filling the vacancy with a retired career bureaucrat and Member Fifteenth Finance Commission, Shaktikanta Das.

In a written reply to a query, Minister of State for Finance Shiv Pratap Shukla, conceded in the Lok Sabha on December 14 that the “government asked RBI for a review of its Economic Capital Framework (ECF) adopted in 2016… the board has decided to constitute an Expert Committee to examine the ECF, the membership of the terms of reference of which will be jointly determined by the government and the RBI”.&nbsp;

It needs to be noted that the erstwhile governor Patel stuck to his guns in not yielding an inch in the governing structure and economic policy framework that would translate into more access to the government to RBI’s surplus reserves of Rs 9.3 lakh crore.

This is all the more so when the RBI has the big mandate to keep inflation at four per cent within a band of plus/minus one per cent. So any leeway or access to the surplus funds parked with the banking regulator being extended to the government especially at a time when the nation is going to the mega polls in 2019, is bound to goad it to splurge on goodies and other populist schemes that would only stoke and fuel inflationary fires before long. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;

Though other weighty issues such as credit and liquidity being made reasonably available to the real sectors of the economy and at an affordable cost, the central bank is seized of the problems and is taking steps to ensure that credit delivery to the vital sectors is ensured through various ongoing measures it had kept unveiling from time to time.&nbsp;

RBI data reveals that the banking system’s non-food credit growth, which touched a nadir to 7-8 per cent in the three years to October 2017 (when the RBI cracked the whip to cleanse the stable of sore NPAs), returned to double-digit growth between October 2017 to October 2018 at 13 per cent.

The arrival of a bureaucrat to the RBI as its top man is coterminous with the efforts of the BJP-led NDA government to revive the fortunes of the slowing economy. For Shaktikanta Das, who was instrumental in altering the industrial landscape of Tamil Nadu as the Industries Secretary in two spells, his elevation to the corner office of the central bank is bound to be keenly watched by wonks. He had worked in the Finance Ministry at various levels and was representing the government side in framing the inflation-targeting as the supreme remit of the RBI, besides being a vocal supporter of the controversial demonetisation policy of the government.

He has plates full of priority issues that range from RBI governance, transfer of RBI reserves to the government, systemic liquidity encompassing a window for distressed finance companies, relaxation of the February 12 circular, which hardened the norms for non-performing loans to allowing banks that are in the Prompt Corrective Action (PCA) category, to resume lending.&nbsp;

The first board meeting he presided over on December 14 was shorn of drama/trauma, confined to less than an hour by resolving to examine the issues further, review liquidity, credit delivery and economic situation.

As its next board meeting is in January 2019, Das must perforce have to balance his new avatar as a central banker with his quondam position as one from the other side of the ring, so that he is seen not abandoning the quest of his predecessor bureaucrat-turned RBI governors such as YV Reddy and D Subba Rao, who strove to ensure the autonomy, credibility and independence of the RBI even by demurring with their Finance Ministers in their own unobtrusive ways.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-shaktikanta-das-has-a-job-cut-out-for-himself-at-rbi-2699553">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The outgoing year marks a watershed in the annals of the country’s apex bank as the Reserve Bank of India (RBI) turned out to be a tussling ground for its governor and the government.

The outgoing year marks a watershed in the annals of the country’s apex bank as the Reserve Bank of India (RBI) turned out to be a tussling ground for its governor and the government. The denouement came when the soft, scholarly and self-effacing twenty-fourth governor of the central bank, Urjit Patel, called it quits on December 10 and the government lost little time in filling the vacancy with a retired career bureaucrat and Member Fifteenth Finance Commission, Shaktikanta Das. In a written reply to a query, Minister of State for Finance Shiv Pratap Shukla, conceded in the Lok Sabha on December 14 that the “government asked RBI for a review of its Economic Capital Framework (ECF) adopted in 2016… the board has decided to constitute an Expert Committee to examine the ECF, the membership of the terms of reference of which will be jointly determined by the government and the RBI”. It needs to be noted that the erstwhile governor Patel stuck to his guns in not yielding an inch in the governing structure and economic policy framework that would translate into more access to the government to RBI’s surplus reserves of Rs 9.3 lakh crore. This is all the more so when the RBI has the big mandate to keep inflation at four per cent within a band of plus/minus one per cent. So any leeway or access to the surplus funds parked with the banking regulator being extended to the government especially at a time when the nation is going to the mega polls in 2019, is bound to goad it to splurge on goodies and other populist schemes that would only stoke and fuel inflationary fires before long. Though other weighty issues such as credit and liquidity being made reasonably available to the real sectors of the economy and at an affordable cost, the central bank is seized of the problems and is taking steps to ensure that credit delivery to the vital sectors is ensured through various ongoing measures it had kept unveiling from time to time. RBI data reveals that the banking system’s non-food credit growth, which touched a nadir to 7-8 per cent in the three years to October 2017 (when the RBI cracked the whip to cleanse the stable of sore NPAs), returned to double-digit growth between October 2017 to October 2018 at 13 per cent. The arrival of a bureaucrat to the RBI as its top man is coterminous with the efforts of the BJP-led NDA government to revive the fortunes of the slowing economy. For Shaktikanta Das, who was instrumental in altering the industrial landscape of Tamil Nadu as the Industries Secretary in two spells, his elevation to the corner office of the central bank is bound to be keenly watched by wonks. He had worked in the Finance Ministry at various levels and was representing the government side in framing the inflation-targeting as the supreme remit of the RBI, besides being a vocal supporter of the controversial demonetisation policy of the government. He has plates full of priority issues that range from RBI governance, transfer of RBI reserves to the government, systemic liquidity encompassing a window for distressed finance companies, relaxation of the February 12 circular, which hardened the norms for non-performing loans to allowing banks that are in the Prompt Corrective Action (PCA) category, to resume lending. The first board meeting he presided over on December 14 was shorn of drama/trauma, confined to less than an hour by resolving to examine the issues further, review liquidity, credit delivery and economic situation. As its next board meeting is in January 2019, Das must perforce have to balance his new avatar as a central banker with his quondam position as one from the other side of the ring, so that he is seen not abandoning the quest of his predecessor bureaucrat-turned RBI governors such as YV Reddy and D Subba Rao, who strove to ensure the autonomy, credibility and independence of the RBI even by demurring with their Finance Ministers in their own unobtrusive ways. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Shaktikanta Das has a job cut out for himself at RBI

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders.

Without mentioning the government invoking the never- before-used controversial Section 7 of the RBI Act, he said government used "every instrument available to our advantage to force a discussion with RBI" on the issues of liquidity and credit which is important for the economy.

He claimed that there was never a breakdown in the relationship between RBI and government, and that pleasant meetings were held regularly on the differences at all levels, including with the Prime Minister Narendra Modi.

"Institutions need to be independent, they need to have functional autonomy but institutions don't have to be isolationist," Jaitely said, speaking at an event organised by Republic channel.

Without specifying RBI, he said there is a need for regulators to consult all the stakeholders as that is when one gets a "feel of the market."

One cannot say that one reads the books, data and research papers before forming opinions, he said.

"The empirical situation in the market will be entirely different, unless you consult stakeholders," he said, adding there is a fair chance of a regulator going wrong on a subject because of the isolationist attitude.

It can be noted that in the weeks prior to his sudden exit from RBI, there were some reports of Patel refusing to meet key stakeholders, especially from non-bank lenders when they were in crisis.

Patel's successor Shaktikanta Das has made it clear on day one that he will be meeting all stakeholders more and already had a chat with city-based heads of state run banks.

Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate.

Improvising on a statement from his predecessor P Chidambaram of "walking alone" in face of non-cooperation by RBI under D Subbarao, he said, "when you walk, other decision-makers also have to talk with you".

He hoped RBI will look at the widening real interest rates, a consequence of a massive dip in inflation, while announcing the next policy review.

Jaitley also reiterated that government is not eyeing any windfall from the RBI's excess capital reserves which can be used for high public expenditure ahead of the elections.

He also affirmed government's commitment to meet the 3.3 per cent fiscal deficit target, despite the gap already having been overshot with five before the end of the fiscal.

As of October, government has already used up by its borrowing window by 4 percentage points at 104 per cent.

Jaitley said he hops the newly-formed Congress governments in Madhya Pradesh and Chhattisgarh find resources to fund farm loan waivers while flagging the importance of states also not missing their fiscal gap targets.

Referring to the pain caused by populist measures, he said a previous Congress government's free electricity to farmers resulted in state-run discoms' debt shooting up to Rs 70,000 crore from Rs 22,000 crore in five years after the announcement.&nbsp;

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders.

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders. Without mentioning the government invoking the never- before-used controversial Section 7 of the RBI Act, he said government used "every instrument available to our advantage to force a discussion with RBI" on the issues of liquidity and credit which is important for the economy. He claimed that there was never a breakdown in the relationship between RBI and government, and that pleasant meetings were held regularly on the differences at all levels, including with the Prime Minister Narendra Modi. "Institutions need to be independent, they need to have functional autonomy but institutions don't have to be isolationist," Jaitely said, speaking at an event organised by Republic channel. Without specifying RBI, he said there is a need for regulators to consult all the stakeholders as that is when one gets a "feel of the market." One cannot say that one reads the books, data and research papers before forming opinions, he said. "The empirical situation in the market will be entirely different, unless you consult stakeholders," he said, adding there is a fair chance of a regulator going wrong on a subject because of the isolationist attitude. It can be noted that in the weeks prior to his sudden exit from RBI, there were some reports of Patel refusing to meet key stakeholders, especially from non-bank lenders when they were in crisis. Patel's successor Shaktikanta Das has made it clear on day one that he will be meeting all stakeholders more and already had a chat with city-based heads of state run banks. Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate. Improvising on a statement from his predecessor P Chidambaram of "walking alone" in face of non-cooperation by RBI under D Subbarao, he said, "when you walk, other decision-makers also have to talk with you". He hoped RBI will look at the widening real interest rates, a consequence of a massive dip in inflation, while announcing the next policy review. Jaitley also reiterated that government is not eyeing any windfall from the RBI's excess capital reserves which can be used for high public expenditure ahead of the elections. He also affirmed government's commitment to meet the 3.3 per cent fiscal deficit target, despite the gap already having been overshot with five before the end of the fiscal. As of October, government has already used up by its borrowing window by 4 percentage points at 104 per cent. Jaitley said he hops the newly-formed Congress governments in Madhya Pradesh and Chhattisgarh find resources to fund farm loan waivers while flagging the importance of states also not missing their fiscal gap targets. Referring to the pain caused by populist measures, he said a previous Congress government's free electricity to farmers resulted in state-run discoms' debt shooting up to Rs 70,000 crore from Rs 22,000 crore in five years after the announcement.

Regulators can't work in isolation: Jaitley on row with RBI

<a href="http://www.wionews.com/india-news/hamid-nihal-ansari-in-jail-in-pak-for-6-years-crosses-back-over-into-india-185105">Hamid Nihal Ansari, in jail in Pakistan for 6 years, returns to India</a>

Indian national Hamid Nihal Ansari, who has been in jail in Pakistan for the last six years, crossed back over into India Tuesday evening a little before 6 pm.&nbsp;

<a href="http://www.wionews.com/india-news/govt-did-not-ask-for-urjit-patels-resignation-as-rbi-governor-jaitley-185044">Govt did not ask for Urjit Patel's resignation as RBI governor: Jaitley</a>

Finance Minister Arun Jaitley Tuesday said Tuesday that the government never sought the resignation of Urjit Patel as governor of the Reserve Bank of India over differences in handling liquidity stress in certain sectors.

<a href="http://www.wionews.com/sports/man-united-sacks-manager-jose-mourinho-with-immediate-effect-185047">Manchester United sack Jose Mourinho with immediate effect</a>

Manchester United on Tuesday sacked Jose Mourinho as the club's manager with immediate effect, following Sunday’s defeat at Liverpool.&nbsp;

<a href="http://www.wionews.com/world/russian-election-meddling-kremlin-rejects-new-us-reports-accusation-185064">Kremlin says Russia did not target black US voters</a>

The Kremlin on Tuesday rejected Washington's accusations that Russia tried to disrupt the 2016 presidential vote and sought to demoralise African-Americans, calling the charges incomprehensible.

<a href="http://www.wionews.com/south-asia/former-pm-mahinda-rajapaksa-becomes-sri-lankas-main-opposition-leader-185083">Former PM Mahinda Rajapaksa becomes Sri Lanka's main opposition leader</a>

Mahinda Rajapaksa on Tuesday became Sri Lanka's main opposition leader in Parliament, days after he resigned as prime minister after clinging on to power for nearly two months, amidst the unprecedented political turmoil in the country.

&nbsp;

Hamid Nihal Ansari, in jail in Pakistan for 6 years, returns to India Indian national Hamid Nihal Ansari, who has been in jail in Pakistan for the last six years, crossed back over into India Tuesday evening a little before 6 pm.

Hamid Nihal Ansari, in jail in Pakistan for 6 years, returns to India Indian national Hamid Nihal Ansari, who has been in jail in Pakistan for the last six years, crossed back over into India Tuesday evening a little before 6 pm. Govt did not ask for Urjit Patel's resignation as RBI governor: Jaitley Finance Minister Arun Jaitley Tuesday said Tuesday that the government never sought the resignation of Urjit Patel as governor of the Reserve Bank of India over differences in handling liquidity stress in certain sectors. Manchester United sack Jose Mourinho with immediate effect Manchester United on Tuesday sacked Jose Mourinho as the club's manager with immediate effect, following Sunday’s defeat at Liverpool. Kremlin says Russia did not target black US voters The Kremlin on Tuesday rejected Washington's accusations that Russia tried to disrupt the 2016 presidential vote and sought to demoralise African-Americans, calling the charges incomprehensible. Former PM Mahinda Rajapaksa becomes Sri Lanka's main opposition leader Mahinda Rajapaksa on Tuesday became Sri Lanka's main opposition leader in Parliament, days after he resigned as prime minister after clinging on to power for nearly two months, amidst the unprecedented political turmoil in the country.

News brief: Big stories of the day

Finance Minister Arun Jaitley Tuesday said Tuesday that <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">the government never sought the resignation of Urjit Patel</a> as governor of the Reserve Bank of India over differences in handling liquidity stress in certain sectors.

Speaking at a television news channel event, he said the government does not need a single penny from RBI's capital reserves during the current fiscal.

Responding to criticism over surprise resignation of Patel as RBI Governor earlier this month, he said there were cordial discussions at the meeting of the RBI board over issues such as the appropriate size of reserves the central bank must hold.

"The government never asked for his resignation," he said.

After Patel's resignation, the government appointed former bureaucrat Shaktikanta Das as the Governor of RBI.&nbsp;

Finance Minister Arun Jaitley Tuesday said Tuesday that the government never sought the resignation of Urjit Patel as governor of the Reserve Bank of India over differences in handling liquidity stress in certain sectors.

Finance Minister Arun Jaitley Tuesday said Tuesday that the government never sought the resignation of Urjit Patel as governor of the Reserve Bank of India over differences in handling liquidity stress in certain sectors. Speaking at a television news channel event, he said the government does not need a single penny from RBI's capital reserves during the current fiscal. Responding to criticism over surprise resignation of Patel as RBI Governor earlier this month, he said there were cordial discussions at the meeting of the RBI board over issues such as the appropriate size of reserves the central bank must hold. "The government never asked for his resignation," he said. After Patel's resignation, the government appointed former bureaucrat Shaktikanta Das as the Governor of RBI.

Govt did not ask for Urjit Patel's resignation as RBI governor: Jaitley

&nbsp;The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework (ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks.

This is the first board meet chaired by the <a href="http://www.wionews.com/india-news/will-uphold-autonomy-of-rbi-new-governor-shaktikanta-das-183476">newly- appointed Shaktikanta Das</a>, who took over as the <a href="http://www.wionews.com/business-economy/shaktikanta-das-assumes-charge-as-rbi-governor-183416">25th governor</a> on Wednesday.

In the previous board meeting, held on November 19, the board had decided to constitute a committee of experts to fix the appropriate level of economic capital framework (ECF) that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI.

The issue of transfer of RBI's excess reserves, which stood at Rs 9.43 lakh crore as of June 2018, to the government has been one of the contentious issues between the government and the central bank for a long time and also one of the key reasons for the sudden <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">resignation of Urjit Patel</a> Monday.

The 18-member RBI board will also deliberate on the relaxation of prompt corrective action norms. Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders.

These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.

On Thursday, Das met the chiefs of a few state-run banks to discuss their concerns. Lenders requested the governor to ease the PCA norms and also sought relaxation in the one-day default norm announced in the February 12 RBI circular on the reclassification of NPAs.

At the November 19 meeting, the RBI board had also decided to refer the issue of relaxing PCA framework to the Board of Financial Supervision (BFS) of the central bank.

Unlike the last meet, which lasted for 10 hours, Friday's meeting is likely to get over by afternoon.&nbsp;

The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework (ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks.

The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework (ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks. This is the first board meet chaired by the newly- appointed Shaktikanta Das, who took over as the 25th governor on Wednesday. In the previous board meeting, held on November 19, the board had decided to constitute a committee of experts to fix the appropriate level of economic capital framework (ECF) that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI. The issue of transfer of RBI's excess reserves, which stood at Rs 9.43 lakh crore as of June 2018, to the government has been one of the contentious issues between the government and the central bank for a long time and also one of the key reasons for the sudden resignation of Urjit Patel Monday. The 18-member RBI board will also deliberate on the relaxation of prompt corrective action norms. Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders. These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra. On Thursday, Das met the chiefs of a few state-run banks to discuss their concerns. Lenders requested the governor to ease the PCA norms and also sought relaxation in the one-day default norm announced in the February 12 RBI circular on the reclassification of NPAs. At the November 19 meeting, the RBI board had also decided to refer the issue of relaxing PCA framework to the Board of Financial Supervision (BFS) of the central bank. Unlike the last meet, which lasted for 10 hours, Friday's meeting is likely to get over by afternoon.

RBI board meeting gets underway

A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar said the central bank's institutional capabilities are 'very strong' and it will do whatever is required for the markets and economy.

Kumar further said although Patel has done an amazing work in the last two years as RBI Governor, the functioning of the central bank is not dependent on any particular individual.

"RBI's institutional capabilities are very strong and they will do whatever is required for the markets and economy. The fact is that RBI itself is such a professional institution, and such a long-standing institution that you know, the business will continue," Kumar said in New Delhi on Tuesday.

Patel, who had a run-in with the government over autonomy of the central bank, resigned as RBI governor on Monday, citing personal reasons.

The Niti Aayog vice chairman also assured that the government will do whatever is required to continue its business as usual.

"Patel has done an amazing work in the last two years...But RBI is not dependent on any one particular individual," Kumar said.

Commenting of weakening of the rupee after Patel's resignation, Kumar said: "The government also, I am sure, is seized of the matter and will take care whichever way it's possible."

The rupee on Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar said the central bank's institutional capabilities are 'very strong' and it will do whatever is required for the markets and economy.

A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar said the central bank's institutional capabilities are 'very strong' and it will do whatever is required for the markets and economy. Kumar further said although Patel has done an amazing work in the last two years as RBI Governor, the functioning of the central bank is not dependent on any particular individual. "RBI's institutional capabilities are very strong and they will do whatever is required for the markets and economy. The fact is that RBI itself is such a professional institution, and such a long-standing institution that you know, the business will continue," Kumar said in New Delhi on Tuesday. Patel, who had a run-in with the government over autonomy of the central bank, resigned as RBI governor on Monday, citing personal reasons. The Niti Aayog vice chairman also assured that the government will do whatever is required to continue its business as usual. "Patel has done an amazing work in the last two years...But RBI is not dependent on any one particular individual," Kumar said. Commenting of weakening of the rupee after Patel's resignation, Kumar said: "The government also, I am sure, is seized of the matter and will take care whichever way it's possible." The rupee on Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

RBI's institutional capabilities very strong: Niti Aayog's Rajiv Kumar on Urjit Patel's exit

The Indian rupee Tuesday plunged by a significant <a href="http://www.wionews.com/business-economy/sensex-dives-500-points-over-urjit-patels-resignation-state-poll-trends-183068">110 paise in early trade as domestic </a>equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

Patel, who cited "personal reasons" for the decision that was effective immediately is the first governor since 1990, to step down before his term ends.

At the Interbank Foreign Exchange, the rupee opened weak at 72.42, showing a sharp plunge of 110 paise over its previous closing price.

On Monday, the Indian rupee tumbled 50 paise to close at 71.32 against the US dollar.

Besides, Patel's resignation, analysts attributed the fall in the domestic currency as a knee-jerk reaction to early state election trends that suggest a win for the opposition party in key states, ahead of the general election of 2019.

Forex traders said worries on the global trade war front, sharp sell-off in domestic equity market and rising crude prices also weighed on the domestic currency.

The Sensex opened over 500 points lower. It was trading 517.97 points, or 1.48 per cent, down at 34,441.75. In a similar movement, the NSE Nifty dropped below the 10,400 mark, slumping 144.05 points, or 1.37 per cent, to 10,344.40.

Crude oil prices surged ahead, after the OPEC has decided to cut production by 1.2 million bpd. The global benchmark, Brent crude oil was trading at USD 60.29 per barrel, higher by 0.53 per cent.

Meanwhile, foreign funds bought shares worth Rs116.22 crore from the capital markets on a net basis, while domestic institutional investors sold shares worth Rs 145.80 crore Monday, provisional data showed.&nbsp;

The Indian rupee Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

The Indian rupee Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel. Patel, who cited "personal reasons" for the decision that was effective immediately is the first governor since 1990, to step down before his term ends. At the Interbank Foreign Exchange, the rupee opened weak at 72.42, showing a sharp plunge of 110 paise over its previous closing price. On Monday, the Indian rupee tumbled 50 paise to close at 71.32 against the US dollar. Besides, Patel's resignation, analysts attributed the fall in the domestic currency as a knee-jerk reaction to early state election trends that suggest a win for the opposition party in key states, ahead of the general election of 2019. Forex traders said worries on the global trade war front, sharp sell-off in domestic equity market and rising crude prices also weighed on the domestic currency. The Sensex opened over 500 points lower. It was trading 517.97 points, or 1.48 per cent, down at 34,441.75. In a similar movement, the NSE Nifty dropped below the 10,400 mark, slumping 144.05 points, or 1.37 per cent, to 10,344.40. Crude oil prices surged ahead, after the OPEC has decided to cut production by 1.2 million bpd. The global benchmark, Brent crude oil was trading at USD 60.29 per barrel, higher by 0.53 per cent. Meanwhile, foreign funds bought shares worth Rs116.22 crore from the capital markets on a net basis, while domestic institutional investors sold shares worth Rs 145.80 crore Monday, provisional data showed.

Rupee plunges 110 paise against US dollar in early trade

Eminent economist and columnist <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">Surjit Bhalla on Tuesday said </a>that he had resigned as a part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1.

"I resigned as part-time member of PMEAC on December 1," Bhalla said on social networking site Twitter.

The EAC- PM is headed by Niti Aayog member Bibek Debroy.&nbsp;

Economists Rathin Roy, Ashima Goyal and Shamika Ravi are other part-time members.

On Monday, RBI governor Urjit Patel had resigned citing personal reasons.&nbsp;

"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," Patel had said in a statement.&nbsp;

Patel is the first RBI governor to step down before completing his term since 1990. Patel's resignation came after weeks of tussle between the government and the RBI over issuing the central bank's reserve funds.

The government was of the opinion that the bank should hand over a larger share of them to the government.&nbsp;

Eminent economist and columnist Surjit Bhalla on Tuesday said that he had resigned as a part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1.

Eminent economist and columnist Surjit Bhalla on Tuesday said that he had resigned as a part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1. "I resigned as part-time member of PMEAC on December 1," Bhalla said on social networking site Twitter. The EAC- PM is headed by Niti Aayog member Bibek Debroy. Economists Rathin Roy, Ashima Goyal and Shamika Ravi are other part-time members. On Monday, RBI governor Urjit Patel had resigned citing personal reasons. "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," Patel had said in a statement. Patel is the first RBI governor to step down before completing his term since 1990. Patel's resignation came after weeks of tussle between the government and the RBI over issuing the central bank's reserve funds. The government was of the opinion that the bank should hand over a larger share of them to the government.

Surjit Bhalla resigns as part-time member of Economic Advisory Council to PM Modi

For a career bureaucrat who was equally at ease with three different finance ministers, the journey from North Block to Mint Street has often seen him adopting a non-confrontational approach and building consensus on tackling tricky issues.

Considered an efficient implementer and a team player, <a href="http://www.wionews.com/business-economy/shaktikanta-das-appointed-new-rbi-governor-after-urjit-patels-exit-183297">Shaktikanta Das</a> may be the right man in the Reserve Bank of India (RBI) that has seen a governor quit for the first time in almost three decades amid tensions with the finance ministry over governance and autonomy issues.

Das, a 1980 batch IAS officer of the Tamil Nadu cadre, is a post graduate in history from the Delhi University but had mostly worked in economic and finance departments in the state and the centre during his 37-year-long tenure.

The man, who fielded questions on the day the Modi government made the shock announcement of junking overnight 86 per cent of the currency in circulation, first came to the finance ministry as a joint secretary in 2008 when P Chidambaram was the finance minister.

He stayed on as the reins were taken over by Pranab Mukherjee and was part of budget making for five consecutive years first as a joint secretary and then as an additional secretary. This spanned over tenures of Mukherjee and Chidambaram.&nbsp;

Das was promoted as Secretary, Department of Chemicals and Fertilizers in December 2013 but was brought back to the finance ministry as revenue secretary when the BJP-led government stormed to power in mid-2014.

He first played a part in the Modi government's crackdown on black money and then building a consensus for the impending rollout of the Goods and Services Tax (GST).

Moved to the economic affairs department in September 2015, he was in-charge when the government on November 8, 2016, withdrew from circulation old 500 and 1,000 rupee notes.

From defending the shock announcement to spearheading the demonetisation drive that included the cumbersome process of printing and supplying new 500 and 2,000 rupees notes, his calm composure brought a sense of serenity to an otherwise chaotic situation.

Mild-mannered, Das is known to rarely lose his cool and focus mostly on looking at solutions through consensus rather than shoving a solution down -- qualities that will come handy at the RBI which is having an unprecedented face-off with the finance ministry.

For last few weeks, the RBI has been at loggerheads with the finance ministry on matters ranging from the appropriate size of the reserves the central bank must hold to the easing of lending norms for sectors such as small and medium enterprises.

Besides, there are differences on governance issue as to what should be the level of involvement of central board on various important decision.&nbsp;&nbsp; &nbsp;&nbsp;

The role is well charted before the new Governor Das, who has served on the board of the RBI as a government nominee director for nearly two years as Economic Affairs Secretary till May 2017.

Soon after superannuation, the government appointed Das as G-20 Sherpa of India and a member of the 15th Finance Commission, an MoS rank position in the Government of India.&nbsp;&nbsp; &nbsp;

Das will be the 25th Governor of the RBI. The rare blip on his otherwise illustrious career came in June 2016 when BJP's Subramanian Swamy took a veiled dig that a case pending against Das for allegedly helping Chidambaram "swallow" real estate in Mahabalipuram.

The attack was over a period when he was industry secretary in the Tamil Nadu government.&nbsp;

Naturally, Jaitley came out in full defence of his trusted bureaucrat saying he fully backed him and "an unfair and false attack on a disciplined civil servant" was being made.&nbsp;

For a career bureaucrat who was equally at ease with three different finance ministers, the journey from North Block to Mint Street has often seen him adopting a non-confrontational approach and building consensus on tackling tricky issues.

For a career bureaucrat who was equally at ease with three different finance ministers, the journey from North Block to Mint Street has often seen him adopting a non-confrontational approach and building consensus on tackling tricky issues. Considered an efficient implementer and a team player, Shaktikanta Das may be the right man in the Reserve Bank of India (RBI) that has seen a governor quit for the first time in almost three decades amid tensions with the finance ministry over governance and autonomy issues. Das, a 1980 batch IAS officer of the Tamil Nadu cadre, is a post graduate in history from the Delhi University but had mostly worked in economic and finance departments in the state and the centre during his 37-year-long tenure. The man, who fielded questions on the day the Modi government made the shock announcement of junking overnight 86 per cent of the currency in circulation, first came to the finance ministry as a joint secretary in 2008 when P Chidambaram was the finance minister. He stayed on as the reins were taken over by Pranab Mukherjee and was part of budget making for five consecutive years first as a joint secretary and then as an additional secretary. This spanned over tenures of Mukherjee and Chidambaram. Das was promoted as Secretary, Department of Chemicals and Fertilizers in December 2013 but was brought back to the finance ministry as revenue secretary when the BJP-led government stormed to power in mid-2014. He first played a part in the Modi government's crackdown on black money and then building a consensus for the impending rollout of the Goods and Services Tax (GST). Moved to the economic affairs department in September 2015, he was in-charge when the government on November 8, 2016, withdrew from circulation old 500 and 1,000 rupee notes. From defending the shock announcement to spearheading the demonetisation drive that included the cumbersome process of printing and supplying new 500 and 2,000 rupees notes, his calm composure brought a sense of serenity to an otherwise chaotic situation. Mild-mannered, Das is known to rarely lose his cool and focus mostly on looking at solutions through consensus rather than shoving a solution down -- qualities that will come handy at the RBI which is having an unprecedented face-off with the finance ministry. For last few weeks, the RBI has been at loggerheads with the finance ministry on matters ranging from the appropriate size of the reserves the central bank must hold to the easing of lending norms for sectors such as small and medium enterprises. Besides, there are differences on governance issue as to what should be the level of involvement of central board on various important decision. The role is well charted before the new Governor Das, who has served on the board of the RBI as a government nominee director for nearly two years as Economic Affairs Secretary till May 2017. Soon after superannuation, the government appointed Das as G-20 Sherpa of India and a member of the 15th Finance Commission, an MoS rank position in the Government of India. Das will be the 25th Governor of the RBI. The rare blip on his otherwise illustrious career came in June 2016 when BJP's Subramanian Swamy took a veiled dig that a case pending against Das for allegedly helping Chidambaram "swallow" real estate in Mahabalipuram. The attack was over a period when he was industry secretary in the Tamil Nadu government. Naturally, Jaitley came out in full defence of his trusted bureaucrat saying he fully backed him and "an unfair and false attack on a disciplined civil servant" was being made.

New RBI Governor Shaktikanta Das's journey from North Block to Mint Street 

The BSE Sensex opened <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">500 points down in early trade on </a>Tuesday after RBI governor Urjit Patel's resignation which was announced a day earlier. The NSE Nifty was also down losing 131 points.

The Sensex was at 34,458.86 with the Nifty at 10354.70.

The markets dived further as state polls leads began pouring in which showed the BJP trailing in big&nbsp;states in Rajasthan, Madhya Pradesh and Chhattisgarh.

On Monday, the Sensex had dived by 714 points on the back of "unfavourable" state exit poll results for the ruling BJP announced by various media agencies on Friday. It was the worst single-session fall for the benchmark BSE index since October 11.

The Sensex&nbsp;lost over 2 per cent, to close at 34,959.72 on Monday. Most stocks including realty, banking, metal, pharma, pharma and financial stocks ended in red.&nbsp;&nbsp; &nbsp;

The broader NSE Nifty too had fallen 205.25 points, or 1.92 per cent, to end at 10,488.45.

The rupee had also weakened against the US dollar in intra-day trade to hit 71.44 per due to fresh foreign fund outflows which further pulled down the markets.&nbsp;

The BSE Sensex opened 500 points down in early trade on Tuesday after RBI governor Urjit Patel's resignation which was announced a day earlier. The NSE Nifty was also down losing 131 points.

The BSE Sensex opened 500 points down in early trade on Tuesday after RBI governor Urjit Patel's resignation which was announced a day earlier. The NSE Nifty was also down losing 131 points. The Sensex was at 34,458.86 with the Nifty at 10354.70. The markets dived further as state polls leads began pouring in which showed the BJP trailing in big states in Rajasthan, Madhya Pradesh and Chhattisgarh. On Monday, the Sensex had dived by 714 points on the back of "unfavourable" state exit poll results for the ruling BJP announced by various media agencies on Friday. It was the worst single-session fall for the benchmark BSE index since October 11. The Sensex lost over 2 per cent, to close at 34,959.72 on Monday. Most stocks including realty, banking, metal, pharma, pharma and financial stocks ended in red. The broader NSE Nifty too had fallen 205.25 points, or 1.92 per cent, to end at 10,488.45. The rupee had also weakened against the US dollar in intra-day trade to hit 71.44 per due to fresh foreign fund outflows which further pulled down the markets.

Sensex dives 500 points over Urjit Patel's resignation, state poll trends

The government on Tuesday appointed former finance secretary Shaktikanta Das as the new governor of Reserve Bank of India. He will have a three-year tenure.

Urjit Patel's shock resignation from the post on Monday following a policy tussle with the government had sent tremors through financial markets, and investors were keen to see the government quickly name a credible replacement.

Das, 61, is currently a member of the the finance commission, and one of India's serving G20 representatives. He was widely perceived to be a contender for the top job at the RBI after the exit of former governor Raghuram Rajan in 2016.

He previously served on the central bank's board. Das came under fire for his pro-demonetisation stance and he was the most visible and vocal bureaucrat at the time Modi withdrew the high-value bank notes in 2016.

Last year, Das criticised the methodology of global rating agencies and sought a sovereign rating upgrade. Das has worked extensively in the budget division under both Modi government and the previous coalition led by the Congress.

(With inputs from agencies)

The government on Tuesday appointed former finance secretary Shaktikanta Das as the new governor of Reserve Bank of India. He will have a three-year tenure. Urjit Patel's shock resignation from the post on Monday following a policy tussle with the government had sent tremors through financial markets, and investors were keen to see the government quickly name a credible replacement.

The government on Tuesday appointed former finance secretary Shaktikanta Das as the new governor of Reserve Bank of India. He will have a three-year tenure. Urjit Patel's shock resignation from the post on Monday following a policy tussle with the government had sent tremors through financial markets, and investors were keen to see the government quickly name a credible replacement. Das, 61, is currently a member of the the finance commission, and one of India's serving G20 representatives. He was widely perceived to be a contender for the top job at the RBI after the exit of former governor Raghuram Rajan in 2016. He previously served on the central bank's board. Das came under fire for his pro-demonetisation stance and he was the most visible and vocal bureaucrat at the time Modi withdrew the high-value bank notes in 2016. Last year, Das criticised the methodology of global rating agencies and sought a sovereign rating upgrade. Das has worked extensively in the budget division under both Modi government and the previous coalition led by the Congress. (With inputs from agencies)

Shaktikanta Das appointed new RBI governor after Urjit Patel's exit

With RBI Governor Urjit Patel <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">putting in his papers</a>, his immediate predecessor Raghuram Rajan Monday said "all Indians" should be concerned as strength of institutions is important for growth and development.

Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, resigned from his job, citing personal reasons.

"I think Dr Patel has made a statement and I think this is the ultimate statement that a regulator or a civil servant can make. I think the statement should be respected," Rajan told news channel ET Now.

Also read: <a href="http://www.wionews.com/india-news/nda-brings-to-book-an-offender-benefited-during-upa-arun-jaitley-on-uk-court-clearing-mallyas-extradition-182978">Great day for India, says Arun Jaitley</a>

"We should" go into the details as to why there was impasse&nbsp;which forced this ultimate decision, he noted.

"I think&nbsp;this is something that all Indians should be concerned about because strength of our institutions is really important for our growth, sustainable growth and equity in the economy," said Rajan, who completed his three-year term as RBI Governor in September 2016.

With regard to powers of the RBI Board, Rajan said there is "an extreme" change in the nature of the governance of the Reserve Bank of India for the "board to become an operational board, that is to make operational decisions".

During his tenure, Rajan had differences with the government and did not get an extension.

Earlier, the board was an advisory and the professionals from the central bank took decisions, Rajan said, apparently referring to recent appointments of RSS ideologue S&nbsp; 
Gurumurthy and cooperative banking sector expert S K Marathe to the board.

"I think, the move towards giving the board more operational authority would impinge on the professional management to regulate and supervise (the bank)... And if that is to be the case then the board should be composed of professionals, as opposed to the larger public," Rajan opined.

Patel's resignation was being speculated right from the time the government cited a never-before-used provision of the RBI Act to get him to consider its views on relaxing lending norms for segments such as small and medium enterprises, appropriate size of reserves the central bank must maintain and easing norms for weak banks.

Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.&nbsp;

With RBI Governor Urjit Patel putting in his papers, his immediate predecessor Raghuram Rajan Monday said "all Indians" should be concerned as strength of institutions is important for growth and development.

With RBI Governor Urjit Patel putting in his papers, his immediate predecessor Raghuram Rajan Monday said "all Indians" should be concerned as strength of institutions is important for growth and development. Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, resigned from his job, citing personal reasons. "I think Dr Patel has made a statement and I think this is the ultimate statement that a regulator or a civil servant can make. I think the statement should be respected," Rajan told news channel ET Now. Also read: Great day for India, says Arun Jaitley "We should" go into the details as to why there was impasse which forced this ultimate decision, he noted. "I think this is something that all Indians should be concerned about because strength of our institutions is really important for our growth, sustainable growth and equity in the economy," said Rajan, who completed his three-year term as RBI Governor in September 2016. With regard to powers of the RBI Board, Rajan said there is "an extreme" change in the nature of the governance of the Reserve Bank of India for the "board to become an operational board, that is to make operational decisions". During his tenure, Rajan had differences with the government and did not get an extension. Earlier, the board was an advisory and the professionals from the central bank took decisions, Rajan said, apparently referring to recent appointments of RSS ideologue S Gurumurthy and cooperative banking sector expert S K Marathe to the board. "I think, the move towards giving the board more operational authority would impinge on the professional management to regulate and supervise (the bank)... And if that is to be the case then the board should be composed of professionals, as opposed to the larger public," Rajan opined. Patel's resignation was being speculated right from the time the government cited a never-before-used provision of the RBI Act to get him to consider its views on relaxing lending norms for segments such as small and medium enterprises, appropriate size of reserves the central bank must maintain and easing norms for weak banks. Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.

All Indians should be concerned: Raghuram Rajan on Urjit Patel's resignation

RBI Governor <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-may-consider-resigning-after-rift-with-government-report-174513">Urjit Patel has resigned</a>,&nbsp;saying he was doing so for "personal reasons".&nbsp;

"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," Patel said in a statement.&nbsp;

"Support and hard work of RBI staff, officers and management has been proximate driver of Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and directors of RBI Central Board and wish them all the best for future," he added.&nbsp;

Pointedly, he made no mention of the finance ministry or the government with which he had been tussling with of late over the issue of the bank's reserve funds.

The government was of the opinion that the bank should hand over a larger share of them to the government.&nbsp;

The government was also keen that the central bank free up credit — by loosening its curbs on the non-banking financial sector — for small and medium enterprises.&nbsp;

The government had wanted to kick-start growth. (A general election is to be held before May next year.)

Patel is the first RBI governor to step down before completing his term since 1990.&nbsp;&nbsp;

The larger battle between the government and Patel had devolved down to one of autonomy. RBI Deputy Governor Viral Acharya had recently warned that any government that does not respect the central bank's financial autonomy <a href="http://www.wionews.com/india-news/a-govt-that-does-not-respect-rbis-independence-will-incur-wrath-of-markets-rbi-deputy-governor-173752">will have to face the wrath of the markets</a>.&nbsp;

The government however&nbsp;reportedly invoked Section 7 of the RBI act which allows it to issue directions to the central bank. The section has never before been invoked in independent India.&nbsp;

"We will miss him immensely," Prime Minister Narendra Modi said in a pair of tweeets after Patel announced his departure.&nbsp;

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Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability.
— Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1072104938908508161?ref_src=twsrc%5Etfw">December 10, 2018</a></blockquote>
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Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely.
— Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1072105285303492614?ref_src=twsrc%5Etfw">December 10, 2018</a></blockquote>
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"He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability," Modi added.&nbsp;

Finance Minister Arun Jaitley also put out a pair of tweets, saying "It was a pleasure for me to deal with him and benefit from his scholarship."&nbsp;

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The Government acknowledges with deep sense of appreciation the services rendered by Dr. Urjit Patel to this country both in his capacity as the Governor and the Deputy Governor of The RBI. It was a pleasure for me to deal with him and benefit from his scholarship. (1/2)
— Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/1072103484642783233?ref_src=twsrc%5Etfw">December 10, 2018</a></blockquote>
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I wish Dr. Patel all the very best and many more years of public service. (2/2)
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He added that "I wish Dr. Patel all the very best and many more years of public service."&nbsp;

&nbsp;

RBI Governor Urjit Patel has resigned, saying he was doing so for "personal reasons". "On account of personal reasons, I have decided to step down from my current position (RBI Governor) effective immediately.

RBI Governor Urjit Patel has resigned, saying he was doing so for "personal reasons". "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," Patel said in a statement. "Support and hard work of RBI staff, officers and management has been proximate driver of Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and directors of RBI Central Board and wish them all the best for future," he added. Pointedly, he made no mention of the finance ministry or the government with which he had been tussling with of late over the issue of the bank's reserve funds. The government was of the opinion that the bank should hand over a larger share of them to the government. The government was also keen that the central bank free up credit — by loosening its curbs on the non-banking financial sector — for small and medium enterprises. The government had wanted to kick-start growth. (A general election is to be held before May next year.) Patel is the first RBI governor to step down before completing his term since 1990. The larger battle between the government and Patel had devolved down to one of autonomy. RBI Deputy Governor Viral Acharya had recently warned that any government that does not respect the central bank's financial autonomy will have to face the wrath of the markets. The government however reportedly invoked Section 7 of the RBI act which allows it to issue directions to the central bank. The section has never before been invoked in independent India. "We will miss him immensely," Prime Minister Narendra Modi said in a pair of tweeets after Patel announced his departure. Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic issues. He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability. — Narendra Modi (@narendramodi) December 10, 2018 × Dr. Urjit Patel is a thorough professional with impeccable integrity. He has been in the Reserve Bank of India for about 6 years as Deputy Governor and Governor. He leaves behind a great legacy. We will miss him immensely. — Narendra Modi (@narendramodi) December 10, 2018 × "He steered the banking system from chaos to order and ensured discipline. Under his leadership, the RBI brought financial stability," Modi added. Finance Minister Arun Jaitley also put out a pair of tweets, saying "It was a pleasure for me to deal with him and benefit from his scholarship." The Government acknowledges with deep sense of appreciation the services rendered by Dr. Urjit Patel to this country both in his capacity as the Governor and the Deputy Governor of The RBI. It was a pleasure for me to deal with him and benefit from his scholarship. (1/2) — Arun Jaitley (@arunjaitley) December 10, 2018 × I wish Dr. Patel all the very best and many more years of public service. (2/2) — Arun Jaitley (@arunjaitley) December 10, 2018 × He added that "I wish Dr. Patel all the very best and many more years of public service."

RBI Governor Urjit Patel resigns, says it's for 'personal reasons'

Indian stock, bond and foreign exchange markets are all likely to open lower on Tuesday after the shock resignation of the head of the Reserve Bank of India (RBI).

RBI Governor Urjit Patel said in a brief statement he had resigned for "personal reasons". He has clashed with the government over the central bank's independence, worrying investors in Indian markets, who will want to know who replaces him and the effect on monetary policy.

"Markets certainly will be concerned unless there is further clarification that comes through tonight," said R. Sivakumar, head of fixed income at Axis Mutual Fund.

Patel's departure comes at a critical time for Indian investors, just before a series of state elections on Tuesday, where the ruling Bharatiya Janata Party led by Narendra Modi may lose ground.

The central banker's resignation on Monday evening came after the majority of markets in India were closed, but futures contracts, which track the performance of asset classes outside of market hours, suggested significant declines were likely on Tuesday morning.

Indian rupee forwards tracking the performance of the currency against the dollar posted their biggest daily slump in more than five years on Monday.

The one-month contract was last quoted at 72.78 per dollar compared to a spot market rate of 71.35 per cent dollar.

Exchange-traded funds tracking Indian stock markets and listed in Europe fell by more than 5 per cent, suggesting India's stock market, which closed down by around 2 per cent, might fall by more than 3 per cent at the open on Tuesday.

The Swiss-listed Lyxor MSCI India UCITS ETF fell 5.5 per cent. Similar funds listed in Germany and France were down by around 4.5 per cent.

A 3.5 per cent decline for the MSCI India International index would be its biggest drop for more than two years.

Longer-term, the government will need to be cautious of outflows from overseas investors, according to Ajay Bagga, a stock market expert.

"A lot of communication will be needed to foreign institutional investors to give them confidence," he said.

Yields on India's benchmark 10-year government bonds, which move inversely to prices, rose to a high of 7.59 per cent after hours, according to quotes from some fixed income brokers in London, a rise of 1.6 per cent.

Indian stock, bond and foreign exchange markets are all likely to open lower on Tuesday after the shock resignation of the head of the Reserve Bank of India (RBI).

Indian stock, bond and foreign exchange markets are all likely to open lower on Tuesday after the shock resignation of the head of the Reserve Bank of India (RBI). RBI Governor Urjit Patel said in a brief statement he had resigned for "personal reasons". He has clashed with the government over the central bank's independence, worrying investors in Indian markets, who will want to know who replaces him and the effect on monetary policy. "Markets certainly will be concerned unless there is further clarification that comes through tonight," said R. Sivakumar, head of fixed income at Axis Mutual Fund. Patel's departure comes at a critical time for Indian investors, just before a series of state elections on Tuesday, where the ruling Bharatiya Janata Party led by Narendra Modi may lose ground. The central banker's resignation on Monday evening came after the majority of markets in India were closed, but futures contracts, which track the performance of asset classes outside of market hours, suggested significant declines were likely on Tuesday morning. Indian rupee forwards tracking the performance of the currency against the dollar posted their biggest daily slump in more than five years on Monday. The one-month contract was last quoted at 72.78 per dollar compared to a spot market rate of 71.35 per cent dollar. Exchange-traded funds tracking Indian stock markets and listed in Europe fell by more than 5 per cent, suggesting India's stock market, which closed down by around 2 per cent, might fall by more than 3 per cent at the open on Tuesday. The Swiss-listed Lyxor MSCI India UCITS ETF fell 5.5 per cent. Similar funds listed in Germany and France were down by around 4.5 per cent. A 3.5 per cent decline for the MSCI India International index would be its biggest drop for more than two years. Longer-term, the government will need to be cautious of outflows from overseas investors, according to Ajay Bagga, a stock market expert. "A lot of communication will be needed to foreign institutional investors to give them confidence," he said. Yields on India's benchmark 10-year government bonds, which move inversely to prices, rose to a high of 7.59 per cent after hours, according to quotes from some fixed income brokers in London, a rise of 1.6 per cent.

Markets likely to be rocked as RBI chief Urjit Patel quits

The Reserve Bank Monday denied speculation about deputy governor Viral Acharya also quitting his job, terming them as incorrect and baseless rumours.

"Reports of deputy governor Acharya also having quit are baseless and incorrect," an RBI spokesperson told PTI.

Within minutes of Governor Urjit Patel announcing his decision to quit, there have been reports of Acharya also following suit.

Acharya had made the October 26 speech on the need to preserve the autonomy of RBI, which got the soured central bank-government relationship out into the public domain.

In the over 90-minute long speech, Acharya, who is in charge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank is compromised. Acharya had explicitly said he had the backing of Governor Patel for making the speech.&nbsp;

The Reserve Bank Monday denied speculation about deputy governor Viral Acharya also quitting his job, terming them as incorrect and baseless rumours. "Reports of deputy governor Acharya also having quit are baseless and incorrect," an RBI spokesperson told PTI.

The Reserve Bank Monday denied speculation about deputy governor Viral Acharya also quitting his job, terming them as incorrect and baseless rumours. "Reports of deputy governor Acharya also having quit are baseless and incorrect," an RBI spokesperson told PTI. Within minutes of Governor Urjit Patel announcing his decision to quit, there have been reports of Acharya also following suit. Acharya had made the October 26 speech on the need to preserve the autonomy of RBI, which got the soured central bank-government relationship out into the public domain. In the over 90-minute long speech, Acharya, who is in charge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank is compromised. Acharya had explicitly said he had the backing of Governor Patel for making the speech.

RBI says no basis to reports about Acharya quitting

PM Modi, Arun Jaitley hail outgoing RBI governor Urjit Patel

It is important for the Indian <a href="http://www.wionews.com/business-economy/rbi-to-pump-in-additional-liquidity-of-rs-40000-crore-in-december-179820">government to heed the RBI's message</a> on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.&nbsp;

Addressing a group of journalists here, he also said the <a href="http://www.wionews.com/india-news/govt-does-not-need-extra-funds-from-rbi-to-meet-fiscal-deficit-target-arun-jaitley-179162">International Monetary Fund does not</a> want politicians "manipulating" central banks for political ends.

"There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government.

"We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said.&nbsp;

"Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added.

Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical.

Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said.&nbsp;

Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment.

However, at the same time, he said, their moves also raised questions of transparency and accountability.&nbsp;

"So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said.

If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said.&nbsp;

"Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added.&nbsp;

After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. &nbsp;

India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government.

"India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here.

He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. 
&nbsp; 
"There is a big challenge of stricter, oversight," the economist said.

Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system.&nbsp;

"But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry. Addressing a group of journalists here, he also said the International Monetary Fund does not want politicians "manipulating" central banks for political ends. "There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government. "We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said. "Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added. Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical. Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said. Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment. However, at the same time, he said, their moves also raised questions of transparency and accountability. "So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said. If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said. "Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added. After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government. "India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here. He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. "There is a big challenge of stricter, oversight," the economist said. Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system. "But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

India's growth very solid, government should heed RBI's message: IMF

<a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">RBI Governor Urjit Patel resigns, says it's for 'personal reasons'</a>

RBI Governor Urjit Patel has resigned, saying he was doing so for "personal reasons".&nbsp;

"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," Patel said in a statement.&nbsp;

Pointedly, he did not mention the finance ministry or the government in his statement.&nbsp;

 
<a href="http://www.wionews.com/india-news/legal-team-will-take-proper-steps-over-whatever-judgement-is-pronounced-mallya-182872">UK court orders Vijay Mallya's extradition to India, CBI says 'we welcome the verdict'</a>

UK's Westminster Magistrates' Court on Monday ordered liquor baron Vijay Mallya's extradition to India.

According to reports, Mallya has 14 days to appeal his extradition in the High Court.&nbsp;

 
<a href="http://www.wionews.com/south-asia/pakistan-will-continue-to-lend-full-support-to-people-of-kashmir-imran-khan-182917">Pakistan will continue to lend full support to people of Kashmir: Imran Khan</a>

Pakistan would continue to lend full diplomatic, political and moral support to the people of Jammu and Kashmir, Prime Minister Imran Khan said Monday.&nbsp;

Khan's remarks came in a message on the Human Rights Day which is observed every year on December 10.

 
<a href="http://www.wionews.com/india-news/had-bitter-experience-tried-putting-forth-my-words-while-in-nda-rlsp-chief-upendra-kushwaha-quits-as-union-minister-pulls-out-from-nda-182866">'Bihar is still where it was,' RLSP chief Upendra Kushwaha says after pulling out of NDA</a>

RLSP Chief Upendra Kushwaha quit as union minister on Monday and stated that his party will no longer be a part of the National Democratic Alliance.&nbsp;

The minister stated that he has had a "bitter experience" with the BJP, adding that Bihar Chief Minister Nitish Kumar "has done injustice to people of all fronts".&nbsp;

 
<a href="http://www.wionews.com/world/eu-insists-will-not-renegotiate-brexit-deal-182934">EU says it will not renegotiate Brexit deal</a>

The EU has already offered Britain the "best and only possible" Brexit divorce deal and will not renegotiate it, the European Commission warned Monday on the eve of a vote in the British parliament.

"Our position has not changed and as far as we're concerned the United Kingdom is leaving the European Union on the 29th of March 2019," spokeswoman Mina Andreeva told reporters.

RBI Governor Urjit Patel resigns, says it's for 'personal reasons' RBI Governor Urjit Patel has resigned, saying he was doing so for "personal reasons". "On account of personal reasons, I have decided to step down from my current position (RBI Governor) effective immediately.

RBI Governor Urjit Patel resigns, says it's for 'personal reasons' RBI Governor Urjit Patel has resigned, saying he was doing so for "personal reasons". "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," Patel said in a statement. Pointedly, he did not mention the finance ministry or the government in his statement. UK court orders Vijay Mallya's extradition to India, CBI says 'we welcome the verdict' UK's Westminster Magistrates' Court on Monday ordered liquor baron Vijay Mallya's extradition to India. According to reports, Mallya has 14 days to appeal his extradition in the High Court. Pakistan will continue to lend full support to people of Kashmir: Imran Khan Pakistan would continue to lend full diplomatic, political and moral support to the people of Jammu and Kashmir, Prime Minister Imran Khan said Monday. Khan's remarks came in a message on the Human Rights Day which is observed every year on December 10. 'Bihar is still where it was,' RLSP chief Upendra Kushwaha says after pulling out of NDA RLSP Chief Upendra Kushwaha quit as union minister on Monday and stated that his party will no longer be a part of the National Democratic Alliance. The minister stated that he has had a "bitter experience" with the BJP, adding that Bihar Chief Minister Nitish Kumar "has done injustice to people of all fronts". EU says it will not renegotiate Brexit deal The EU has already offered Britain the "best and only possible" Brexit divorce deal and will not renegotiate it, the European Commission warned Monday on the eve of a vote in the British parliament. "Our position has not changed and as far as we're concerned the United Kingdom is leaving the European Union on the 29th of March 2019," spokeswoman Mina Andreeva told reporters.

Breaking News: Urjit Patel steps down as RBI Governor

Reserve Bank Governor Urjit Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, Monday <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">resigned from his job citing personal reasons</a>.

Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.

He was hand-picked by the BJP-led government after his predecessor Raghuram Rajan was denied a second term.

"On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said in a brief statement.

His resignation was being speculated right from the time the government cited a never-before-used provision of the RBI Act to get him to consider its views on relaxing lending norms for segments such as small and medium enterprises, appropriate size of reserves the central bank must maintain and easing norms for weak banks.

In his statement, Patel thanked his colleagues at the RBI but made no mention of the government or the finance ministry.

"It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years. The support and hard work of RBI staff, officers and management has been the proximate driver of the bank's considerable accomplishments in recent years.

"I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future," he said.

Patel had more than eight months of the first three-year tenure left and was eligible for a second term as was given to several of his predecessors barring Rajan.

Prior to taking over on September 6, 2016, he was a Deputy Governor overseeing the monetary policy department at the RBI under Rajan and was known as his 'inflation-warrior'.

Patel, who has worked with the International Monetary Fund, Boston Consulting Group and Reliance Industries, among other organisations, took over after Rajan completed his three-year term on September 4.

Patel is among the few with a corporate background to become RBI governor, the top post at the Mint Street that has been previously held by mostly career bureaucrats and economists.

Patel was the eighth RBI deputy governor to be made Governor, the last being YV&nbsp; Reddy. Besides, at least five former governors had served at the IMF before becoming RBI chief, while a few others went on to work at IMF after leaving the central bank.

However, some deputy governors served as governors only for interim periods.&nbsp;

Reserve Bank Governor Urjit Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, Monday resigned from his job citing personal reasons.

Reserve Bank Governor Urjit Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, Monday resigned from his job citing personal reasons. Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992. He was hand-picked by the BJP-led government after his predecessor Raghuram Rajan was denied a second term. "On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said in a brief statement. His resignation was being speculated right from the time the government cited a never-before-used provision of the RBI Act to get him to consider its views on relaxing lending norms for segments such as small and medium enterprises, appropriate size of reserves the central bank must maintain and easing norms for weak banks. In his statement, Patel thanked his colleagues at the RBI but made no mention of the government or the finance ministry. "It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years. The support and hard work of RBI staff, officers and management has been the proximate driver of the bank's considerable accomplishments in recent years. "I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future," he said. Patel had more than eight months of the first three-year tenure left and was eligible for a second term as was given to several of his predecessors barring Rajan. Prior to taking over on September 6, 2016, he was a Deputy Governor overseeing the monetary policy department at the RBI under Rajan and was known as his 'inflation-warrior'. Patel, who has worked with the International Monetary Fund, Boston Consulting Group and Reliance Industries, among other organisations, took over after Rajan completed his three-year term on September 4. Patel is among the few with a corporate background to become RBI governor, the top post at the Mint Street that has been previously held by mostly career bureaucrats and economists. Patel was the eighth RBI deputy governor to be made Governor, the last being YV Reddy. Besides, at least five former governors had served at the IMF before becoming RBI chief, while a few others went on to work at IMF after leaving the central bank. However, some deputy governors served as governors only for interim periods.

Profile: Urjit Patel had shortest tenure as RBI governor since 1992

Reserve Bank of India(RBI) board <a href="http://www.wionews.com/india-news/govt-pressure-on-rbi-will-become-abundantly-clear-in-monday-meeting-board-members-178018">members N Chandrasekaran along with</a> other members are meeting today amid reports of government pushing for massive capital transfer from India's central banker.

On Saturday, finance minister Arun Jaitley had said that growth must not be "throttled" by limiting credit availability and liquidity. The government is pressing for the creation of a special liquidity window for the troubled non-bank lending sector, liberalising prompt corrective action that restricts normal lending and easier credit supply for small businesses.

The government also wants relaxation in the Prompt Corrective Action (PCA) framework for weak banks and the appropriate size of reserve to be maintained by the central bank.

Economic Affairs Secretary Subhash Chandra Garg had said earlier the government is seeking "appropriate economic capital framework of RBI".

The RBI has repeatedly said it wouldn't yield the government's demands. Reports had suggested in the past week that the government was considering using Section 7 of the RBI Act through which it can direct policy moves to be undertaken by the RBI in "public interest".

"It is necessary that the growth process does not suffer due to the cleaning up of the banking system from the "collectively committed sins" during 2008-14 when the regulatory mechanisms also overlooked high debt accumulation," finance minister Jaitley had said while taking a dig at the central banker and the previous UPA government.

Reports had said the RBI is likely to agree to easing of lending norms for MSMEs to improve credit flow. The central bank is also expected to consider special dispensation for the MSME sector and non-banking financial companies (NBFCs) which have been facing liquidity issues.

Both the government and the RBI have been at loggerheads over several issues with top government officials openly accusing the central bank of stifling India's growth by not releasing capital to spur the economy at a time when oil prices have been going down steadily once again.

RBI Governor Urjit Patel is scheduled to appear before a parliamentary panel on November 27 to brief it on various issues, including the stand-off with the government, status of the economy and demonetisation.

Reserve Bank of India(RBI) board members N Chandrasekaran along with other members are meeting today amid reports of government pushing for massive capital transfer from India's central banker.

Reserve Bank of India(RBI) board members N Chandrasekaran along with other members are meeting today amid reports of government pushing for massive capital transfer from India's central banker. On Saturday, finance minister Arun Jaitley had said that growth must not be "throttled" by limiting credit availability and liquidity. The government is pressing for the creation of a special liquidity window for the troubled non-bank lending sector, liberalising prompt corrective action that restricts normal lending and easier credit supply for small businesses. The government also wants relaxation in the Prompt Corrective Action (PCA) framework for weak banks and the appropriate size of reserve to be maintained by the central bank. Economic Affairs Secretary Subhash Chandra Garg had said earlier the government is seeking "appropriate economic capital framework of RBI". The RBI has repeatedly said it wouldn't yield the government's demands. Reports had suggested in the past week that the government was considering using Section 7 of the RBI Act through which it can direct policy moves to be undertaken by the RBI in "public interest". "It is necessary that the growth process does not suffer due to the cleaning up of the banking system from the "collectively committed sins" during 2008-14 when the regulatory mechanisms also overlooked high debt accumulation," finance minister Jaitley had said while taking a dig at the central banker and the previous UPA government. Reports had said the RBI is likely to agree to easing of lending norms for MSMEs to improve credit flow. The central bank is also expected to consider special dispensation for the MSME sector and non-banking financial companies (NBFCs) which have been facing liquidity issues. Both the government and the RBI have been at loggerheads over several issues with top government officials openly accusing the central bank of stifling India's growth by not releasing capital to spur the economy at a time when oil prices have been going down steadily once again. RBI Governor Urjit Patel is scheduled to appear before a parliamentary panel on November 27 to brief it on various issues, including the stand-off with the government, status of the economy and demonetisation.

RBI board members meet as government seeks credit, liquidity

Congress President Rahul Gandhi on Monday launched a scathing attack on Prime Minister Narendra Modi and said that he and his party coterie is destroying every institution they can get their hands on.&nbsp;

Gandhi took to social media platform Twitter and said that even in the <a href="http://www.wionews.com/india-news/govt-pressure-on-rbi-will-become-abundantly-clear-in-monday-meeting-board-members-178018">RBI meet</a>, Narendra Modi's puppets will attempt to <a href="http://www.wionews.com/business-economy/rbi-board-members-meet-as-government-seeks-credit-liquidity-178115">destroy the RBI</a>.&nbsp;

"Mr Modi and his coterie of cronies, continue to destroy every institution they can get their hands on. Today, through his puppets at the RBI Board Meet he will attempt to destroy the RBI. I hope Mr Patel and his team have a spine and show him his place", Gandhi tweeted amid the ongoing rift with the government and the Reserve Bank of India.

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<blockquote class="twitter-tweet" data-lang="en">
Mr Modi and his coterie of cronies, continue to destroy every institution they can get their hands on. Today, through his puppets at the <a href="https://twitter.com/hashtag/RBIBoardMeet?src=hash&amp;ref_src=twsrc%5Etfw">#RBIBoardMeet</a> he will attempt to destroy the RBI. I hope Mr Patel and his team have a spine and show him his place.
— Rahul Gandhi (@RahulGandhi) <a href="https://twitter.com/RahulGandhi/status/1064387123158093825?ref_src=twsrc%5Etfw">November 19, 2018</a></blockquote>
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The Congress has accused the Modi government of destroying every institution in the country and the latest one being the Reserve Bank of India.

The RBI's crucial board meeting today is expected to take up the liquidity crisis that has triggered a tiff between the government and the central bank.

The meeting is being held in the background of tension between the Centre and the RBI after Finance Ministry cited the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.

The government on November 9 had said it was discussing an "appropriate" size of capital reserves that the central bank must maintain but denied seeking a massive capital transfer from the RBI.

Economic Affairs Secretary Subhash Chandra Garg had also clarified that the government wasn't in any dire needs of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore.

(With inputs from PTI)

Congress President Rahul Gandhi on Monday launched a scathing attack on Prime Minister Narendra Modi and said that he and his party coterie is destroying every institution they can get their hands on.

Congress President Rahul Gandhi on Monday launched a scathing attack on Prime Minister Narendra Modi and said that he and his party coterie is destroying every institution they can get their hands on. Gandhi took to social media platform Twitter and said that even in the RBI meet, Narendra Modi's puppets will attempt to destroy the RBI. "Mr Modi and his coterie of cronies, continue to destroy every institution they can get their hands on. Today, through his puppets at the RBI Board Meet he will attempt to destroy the RBI. I hope Mr Patel and his team have a spine and show him his place", Gandhi tweeted amid the ongoing rift with the government and the Reserve Bank of India. Mr Modi and his coterie of cronies, continue to destroy every institution they can get their hands on. Today, through his puppets at the #RBIBoardMeet he will attempt to destroy the RBI. I hope Mr Patel and his team have a spine and show him his place. — Rahul Gandhi (@RahulGandhi) November 19, 2018 × The Congress has accused the Modi government of destroying every institution in the country and the latest one being the Reserve Bank of India. The RBI's crucial board meeting today is expected to take up the liquidity crisis that has triggered a tiff between the government and the central bank. The meeting is being held in the background of tension between the Centre and the RBI after Finance Ministry cited the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor. The government on November 9 had said it was discussing an "appropriate" size of capital reserves that the central bank must maintain but denied seeking a massive capital transfer from the RBI. Economic Affairs Secretary Subhash Chandra Garg had also clarified that the government wasn't in any dire needs of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore. (With inputs from PTI)

RBI board meeting: Rahul Gandhi says Urjit Patel and his team 'must show Narendra Modi his place'

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