RBI governor Urjit Patel quits: Hope for smooth transition with approach acceptable to all, says corporate India

New Delhi: India Inc on Monday said it hopes for a smooth transition and “an approach acceptable to all” after RBI Governor Urjit Patel’s resignation, citing liquidity and credit offtake issues in the financial sector. Patel, who had a run in with the government over autonomy of the central bank, Monday resigned from his post. “Any views expressed will be termed political. However, the government has to think about what kind of signals it will send out. If the replacement is by a capable person this will all blow over,” PHD Chamber of Commerce and Industry President Rajeev Talwar said. [caption id=“attachment_4095761” align=“alignleft” width=“380”] File image of Urjit Patel. AFP.[/caption] In a brief statement, Patel said he has decided to step down with immediate effect. Industry body CII said, “The governor has said it is his personal reason. We are looking forward to a smooth transition which leads to good results in terms of an approach that is acceptable to all and good for the economy.” “We do not believe that there has been any sort of interference in the functioning of the RBI. Everyone has a right to give their inputs and it should not be seen as interference.” The chamber said there are at present, issues in the financial sector, liquidity and credit, although the currency seems to be well under control. “CII is certain that the resignation of the Governor would be well handled and there would be no major disruption owing to the change at the helm of the regulatory institution,” the industry body said. Assocham Secretary General Uday Kumar Verma said it was “inappropriate” to make a comment on the matter, terming it as an issue between the government and the RBI. Patel was appointed the 24th Governor of the RBI in September 2016 for a three-year term.