Viral Acharya’s Big disclosure – Government wanted to weaken the autonomy of RBI, so Urjit Patel had to go

After former Governor of Reserve Bank of India Urjit Patel, now former Deputy Governor Viral Acharya has detonated from his book. In this, the rare Acharya has made many serious allegations on the Modi government. He said that the government wanted to undermine the autonomy of the Reserve Bank.

Reserve Bank of India Deputy governor’s allegation on Modi government on why Urjit Patel had to leave as governor

New ‘revelations’ are being held about the Reserve Bank of India’s relationship with the Modi government. After former Governor Urjit Patel, now former Deputy Governor Viral Acharya has done a blast with his book. He said that the government was constantly trying to weaken the autonomy of the Reserve Bank, which is why Urjit Patel had to leave the post prematurely.

Serious allegations against Modi government

Significantly, like Urjit Patel, Viral Acharya also left his post ahead of time due to the government not being able to sit back. In his book ‘Quest for Restoring Financial Stability in India’, Viral Acharya has made many serious allegations against the Modi government. He said that the government wanted to undermine the autonomy of the Reserve Bank.

He has also told in this book why he left his post before the scheduled time. This book is a collection of his observations, speeches and research on monetary policy of the Reserve Bank.

He says that during his deputy governor from January 2017 to July 2019, due to many policies, the economic climate of the country became a backlash.

Why did Patel go

Viral Acharya wrote in his book, ‘The central government was infringing on the autonomy of this regulator, also reversing prudent steps and making unreasonable demands. Due to this, Urjit Patel had to resign in the year 2018.

It is worth noting that on July 24, the former RBI governor Urjit Patel’s book Overdraft -saving the Indian saver has been released, in which he too has made many serious allegations against the government. Urjit Patel has said that his differences with the then finance minister started with the government’s decisions on insolvency matters, in which much leniency was taken from companies.

Viral Acharya became the deputy governor of the Reserve Bank in early 2017 and resigned from his post just six months before the completion of his term in 2019.

[amazon box=”B07DQTFX6F” “small”]

Pressure put on the Reserve Bank

The preface of this book has been released recently. In it, he wrote, ‘The manner in which excessive monetary and debt relief downgrades have damaged the stability of the Indian financial sector over the past decade is difficult to recover.’

Referring to former Governor Urjit Patel, he emphasizes that, ‘the structure of governance of the Reserve Bank was being institutionalized in such a way for the future, which meant crossing the Laxman line and this effort Should have failed. As a result, the Reserve Bank sacrificed its governor at the altar of financial stability.

He said that there was a lot of pressure on the Reserve Bank to open the mouth of ‘cash and debt’ to give momentum to the economy. Not only this, the Reserve Bank’s strictures on NPA borrowers were also ‘stopped’.