Manmohan Singh Says Urjit Patel's Resignation as RBI Governor a 'Severe Blow to the Nation’s Economy'
Former Prime Minister Dr Manmohan Singh called RBI Chief Urjit Patel's resignation an unfortunate event | (Photo Credits: PTI)

New Delhi, December 10: Former Prime Minister Dr Manmohan Singh, speaking on the issue of Urjit Patel's resignation as the Governor of Reserve Bank of India (RBI), said that the news of Patel resigning is a "severe blow to the nation’s economy”.  Dr Singh also said that the move threatens to turn the fear of government trying to "“raid the capital reserves for fiscal purposes” in a possible reality. Urjit Patel Resigns as RBI Governor Citing 'Personal Reasons'.

Former Prime Minister Manmohan Singh in his statement said that the decision comes at a point when the Indian economy is faced with many headwinds and expressed sadness over the development.

“There have been apprehensions expressed earlier by the Deputy Governor of the RBI about the government’s intent to raid the capital reserves of the RBI for fiscal purposes. I hope the resignation of the Governor is not a sign that this may soon become a reality,” read Dr Singh's statement. Who Will be the Next RBI Governor as Urjit Patel Resigns? Here are 3 Likely Contenders.

Reserve Bank of India (RBI) Governor Urjit Patel resigned on Monday with immediate effect, citing "personal reasons", setting of a major crisis in India's politico-economic sphere, even as his various predecessors hinted that the move was rooted in the recent controversy involving the government and the central bank.

Patel's resignation comes in the backdrop of the ongoing tiff between the government and the central bank over the liquidity and credit crunch in the economy that provoked an extraordinary meeting of the RBI board on November 19. (With agency Inputs)