RBI Deputy Governor Viral V. Acharya resigns 6 months prior to his term ends

New Delhi: Reserve Bank of India (RBI) Deputy Governor Viral V. Acharya informs to have resigned from his position. Citing some unavoidable personal circumstances as the reason behind his retirement, Acharya still had 6 months left for his formal retirement. The outgoing DG will be playing his current roles till 23 July 2019 and not beyond that.

RBI stated the matter in a circular, “Reports have appeared in certain sections of the media that Viral V. Acharya, Deputy Governor of the Reserve Bank of India (RBI) has resigned from his post. In this connection it is stated as follows: A few weeks ago, Dr. 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.”

Acharya had joined RBI for a term of three years and was associated with the central bank since January 2017. As stated by some media reports, the outgoing DG will go back to his former designation as a professor in New York University Stern School of Business.

As stated by Nomura, this resignation is no surprise because the frictions between him and the government have compelled him to go for this decision. Nomura states, there have been issues with the government on the matter of independence of the central bank.

A warning was also given by Acharya in a speech that delivered on October 26 that he is not pleased to see the central bank’s independence being dominated by the government. This mindset oif controlling the RBI might turn catastrophic. Even in his last monetary policy committee minutes, Acharya wrote: “Why do old men wake so early? Is it to have one longer day?” wonders Santiago, the old fisherman, in “Old Man and the Sea” by Ernest Hemingway. I found myself preparing and writing these minutes early too, perhaps so I could have one longer drafting day!”

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