Acharya, who joined RBI as a deputy governor in January 2017, was supposed to complete three years in his role
On Monday, RBI announced the resignation of Acharya, a move with implications for the bank’s independence and future monetary policy. Submitted a few weeks ago and possibly before the last meeting of RBI’s monetary policy committee (MPC) earlier this month, his resignation request is under consideration.
The central bank said Acharya had stated his inability to continue beyond 23 July, adding, “Consequential action arising from his letter is under consideration of the competent authority.”
The resignation, six months before the end of his term citing “unavoidable personal reasons”, has, however, not come as a surprise for RBI watchers.
Rumours have been swirling since Urijit Patel resigned as RBI governor last year following a prolonged confrontation with the government over a number of issues. In many of these confrontations, Acharya was viewed as Patel’s supporter. It was considered only a matter of time before Acharya also put in his papers.
Some insiders say that in several informal discussions, Acharya had expressed his eagerness to return to his family back in the US. “I have decided to leave six months early due to unavoidable personal reasons. So much to finish in the last month! I am sticking to my schoolteacher’s advice: when your work speaks for itself, don’t interrupt,” he said.