Viral Acharya quits as RBI Deputy Governor six months before end of his term

His move comes a little more than six months after the resignation of Urjit Patel as the bank’s Governor

Reserve Bank of India Deputy Governor Viral Acharya

Reserve Bank of India Deputy Governor Viral Acharya has resigned from his position six months before the end of his term, according to sources in the central bank.

Mr. Acharya, who was in charge of the monetary policy department, reportedly resigned due to “personal reasons”.

His departure is significant as it comes just a little more than six months after the

resignation of Urjit Patel from the post of RBI Governor . It is also perhaps significant that Mr. Patel resigned shortly before the

Bimal Jalan committee is to submit its report on whether RBI reserves could be transferred to the Centre or not.

In October last, Mr. Acharya created a controversy by strongly alluding to the encroachment on autonomy of the central bank by the government. One of the tension points he highlighted was the treatment of the RBI reserves.

The RBI now has three Deputy Governors left — N.S. Vishwanathan, B.P. Kanungo and M.K. Jain.

In a statement in Mumbai, the RBI said that Mr. Acharya was unable to continue his term beyond July 23, due to ‘unavoidable personal circumstances’.

“A few weeks ago, Mr. Acharya submitted a letter to the RBI informing that due to unavoidable personal circumstances, he is unable to continue his term as a Deputy Governor of the RBI beyond July 23, 2019. Consequential action arising from his letter is under consideration of the Competent Authority,” it said.