[Hasmukh Adhia the next Governor?| Or, at least, Arvind Panagariya? Or, straightaway, someone from the Centre for Economic Studies of the Vivekananda International Foundation? Or just that Gurumurthy will be pitchforked!?
Under Modi Raj, nothing, just nothing, can be ruled out. <<In a way, it is good that this has happened. Something really terrible had to happen for the world to realise the plight that other Indian institutions, from courts to universities, are faced with today. With the others, the world could make sympathetic noises and carry on, but the RBI is just too big to ignore. Global capital should vote with its feet and make its displeasure known. The government couldn’t care less about Urjit Patel, but if markets tumble and the rupee goes for a toss, it will have to take note. In its desperation, this government is also alienating one support base after another. Farmers, minorities and backward castes are up in arms anyway, now even the urban middle class, businessmen and investors may desert the teetering ship. There is a sense of things spinning out of control. What a long way we have come from those heady days of the Vikash Purush thumping his chest with promises of Achhe Din. Urjit Patel has done the honourable thing. Now, the government will have to quickly find a ‘yes man’ for the job. This calls for a massive push back, as we cannot afford the destruction of our most important institutions. ***“Make in India” never took off, but ‘Break in India’ just touched a new level*** [emphasis added].>> (Excerpted from sl. no. l. below.)] I/II. https://scroll.in/article/905230/with-rbi-governor-urjit-patels-resignation-break-in-india-has-touched-a-new-high?fbclid=IwAR2lxlyXo8YS4fyjRbXxijMy39YIYnvclysLcwODe_RZZm9OK-50x2Wsn14 Institutional Autonomy With RBI governor Urjit Patel’s resignation, Break in India has touched a new high Something really terrible had to happen for the world to realise the plight that other Indian institutions, from courts to universities, are faced with today. With RBI governor Urjit Patel’s resignation, Break in India has touched a new high PTI an hour ago Udayan Mukherjee Reserve Bank of India governor Urjit Patel has resigned. This was always on the cards, though the governor chose not to announce it, understandably, at the last monetary policy meeting on the December 5. Being a loyal servant of the nation, he may also have waited for the last leg of the state elections to get out of the way, lest the timing of his exit be regarded with political suspicion. Thus, it was on a calm Monday evening that he chose to share this deeply disturbing news with the world. He cited “personal reasons”, for what else could he say? Hardly that relations with the Central government had plumbed such depths that it simply wasn’t possible to carry on anymore. Yet, it wouldn’t have been an impulsive or rash decision, as RBI governors never act in haste. Heads of other institutions can leave in a huff – a Board of Control for Cricket in India chief or even the head of the Film and Television Institute of India. But how often do you see an RBI governor leaving mid-term? It almost never happens, because the ramifications are so enormous and dire. And today, it has. We should be worried, very worried. And not only because the Sensex will tank on Tuesday. The world was disappointed when Raghuram Rajan left at the end of his tenure. Had demonetisation happened on his watch, my bet is that he would have resigned then, but thankfully he was spared that. The acrimony with the government had begun back then; Rajan merely dodged it with grace till it was his time to go. Minutes after Patel’s resignation, speaking to a news channel, Rajan said that “it was an act of protest, the only way an RBI governor could show it” and that “it serves no purpose to have yes-men at the helm of important institutions like the RBI”. Scathing words, coming from a former governor. But far more scathing words are deserved by the government at the Centre. It won’t only be words though, worse may follow. The world may express its displeasure not with words alone but also by pulling out capital from this country. Faith, once shaken, is difficult to restore. The RBI is an institution that global investors trust far more than the government of India, and if there is a feeling, as is bound to be, that this institution is under siege by politicians, their faith in the very foundation of India’s economic solidity may be shaken, with dire consequences. It remains to be seen if more of Patel’s colleagues follow in his footsteps. Disagreements between Central governments and the RBI are nothing new. Over the years, many finance ministers have differed with the RBI on matters of monetary policy. After all, the priorities of sitting finance ministers and the RBI are not always aligned. Governments have to show an account of economic growth during their tenures to win votes and be re-elected but the RBI has to balance those objectives with an eye on inflation and the macro economic stability of the country. So, terse comments are issued from North Block, sometimes in public, but the RBI keeps its head down and carries on. Eventually, governments back off, as they know the price of pushing beyond a point. Better sense always prevailed, until now. To this government, winning is all that matters. No price is too high. As the economy slows dangerously before an upcoming election, the government is desperate to find resources somehow to prime growth again. The RBI stands in its way and the government won’t have it. Demonetisation had already shown us what little respect Prime Minister Narenda Modi has for the office of the RBI governor. And now, he couldn’t swallow the temerity of the man, denying his claim. Thus, the sparks continued to fly till one side had to bow out. Inevitably, it was the governor. In a way, it is good that this has happened. Something really terrible had to happen for the world to realise the plight that other Indian institutions, from courts to universities, are faced with today. With the others, the world could make sympathetic noises and carry on, but the RBI is just too big to ignore. Global capital should vote with its feet and make its displeasure known. The government couldn’t care less about Urjit Patel, but if markets tumble and the rupee goes for a toss, it will have to take note. In its desperation, this government is also alienating one support base after another. Farmers, minorities and backward castes are up in arms anyway, now even the urban middle class, businessmen and investors may desert the teetering ship. There is a sense of things spinning out of control. What a long way we have come from those heady days of the Vikash Purush thumping his chest with promises of Achhe Din. Urjit Patel has done the honourable thing. Now, the government will have to quickly find a ‘yes man’ for the job. This calls for a massive push back, as we cannot afford the destruction of our most important institutions. “Make in India” never took off, but ‘Break in India’ just touched a new level. Udayan Mukherjee is Consulting Editor, CNBC TV18. His novel Dark Circles is now available in stores. II. https://www.timesnownews.com/business-economy/economy/article/urjit-patel-s-resignation-here-s-what-pm-modi-fm-jaitley-said/329030?fbclid=IwAR3HzeVrb03K8V427oIjsXACGAdMlgblDUsu7vlt7aRs1jM1XqI3WrCcXQY Urjit Patel’s resignation: Here’s what PM Modi, FM Jaitley saidBusiness Updated Dec 10, 2018 | 19:28 IST | ET Now Digital Within a span of few minutes after Patel announced his resignation, Prime Minister Narendra Modi mentioned in a tweet highlighting that he is an economist of a very high calibre RBI governor Urjit Patel File photo | Photo Credit: BCCL New Delhi: Reserve Bank of India (RBI) governor Urjit Patel on Monday resigned from his post, citing “personal reasons”, a statement issued by the central bank said. Patel’s term as the RBI chief was to end in September 2019. To recap, Patel was appointed the apex bank chief on September 4, 2016 after Raghuram Rajan resigned from the post on June 19 of that year. "On account of personal reasons, I have decided to step down from my current position effective immediately. 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," Patel said in a statement. Within a span of few minutes after Patel announced his resignation, Prime Minister Narendra Modi mentioned in a tweet that he 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,” the Prime Minister added. Narendra Modi ✔ @narendramodi 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. 18.8K 5:56 PM - Dec 10, 2018 Twitter Ads info and privacy 5,147 people are talking about this Twitter Ads info and privacy Reacting on Urjit Patel's resignation, Finance Minister Arun Jaitley said in a tweet: “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." “I wish Dr. Patel all the very best and many more years of public service,” Jaitley added. Arun Jaitley ✔ @arunjaitley 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) 6,180 5:49 PM - Dec 10, 2018 Twitter Ads info and privacy 1,944 people are talking about this Twitter Ads info and privacy "All Indians should be concerned about the happenings at RBI. At this point, it is important that the government recognises the statement made by Urjit Patel, Raghuram Rajan told ET Now in an exclusive interview. BJP MP Subramaninan Swamy has said Urjit Patel's resignation was wrong for the country, wrong for the economy and wrong or the Reserve Bank. "Saddened, not surprised, by Dr Urjit Patel's resignation. No self respecting scholar or academic can work in this government," senior Congress leader and former finance minister P Chidambaram wrote on micro-blogging site Twitter on Monday, following RBI chief Patel's resignation. P. Chidambaram ✔ @PChidambaram_IN Saddened, not surprised, by Dr Urjit Patel's resignation. No self respecting scholar or academic can work in this government. 1,945 6:27 PM - Dec 10, 2018 Twitter Ads info and privacy 805 people are talking about this Twitter Ads info and privacy Reacting to Urjit Patel's resignation, senior Congress leader and Rajya Sabha MP Ahmed Patel said in tweet: "The manner in which the RBI governor has been forced to quit is a blot on India's monetary and banking system ..." Ahmed Patel ✔ @ahmedpatel The manner in which the RBI governor has been forced to quit is a blot on India’s monetary & banking system BJP Government has unleashed a a defacto financial emergency The country’s reputation and credibility is now at stake 3,164 5:33 PM - Dec 10, 2018 Twitter Ads info and privacy 1,079 people are talking about this Twitter Ads info and privacy "Every institution carefully built and nurtured over the last 70 years is being trampled upon with complete impunity," he added. ANI quoted RBI central board member S Gurumurthy as saying: "Surprised at news that RBI governor resigned. Previous meeting was held in such cordial atmosphere that it comes as a shock. All directors said media had created a wrong perception while inside it was different. That makes it even more surprising." -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. 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