RBI Deputy Governor Viral Acharya resigns before term ends

Viral Acharya, Deputy Governor of the Reserve Bank of India (RBI) has resigned from his position 6 months before the end of his term citing the reason as unavoidable personal circumstances.

Details:

• Acharya, who joined the RBI on 23rd January 2017 for a three-year term, was the youngest Deputy Governor of RBI post economic liberalisation.
• RBI Deputy Governor Viral Acharya's resignation is the second high profile resignation at the Reserve Bank of India (RBI).
• In December 2018 Urjit Patel, former RBI Governor, also resigned about nine months before the end of his scheduled term citing personal reasons.
• Acharya's resignation is also significant as he resigned shortly before Bimal Jalan committee is to submit its report on whether RBI reserves could be transferred to Central Government or not.
• Mr Acharya who was in charge of the monetary policy department created a controversy in October 2018 by strongly alluding to encroachment on the autonomy of the apex bank of the country by the Government.
• One of the main tension points he highlighted was the treatment of RBI reserves.
• RBI is left with only 3 Deputy Governors- N.S. Vishwanathan, B.P. Kanungo and M.K. Jain.

One must know:

• Dr Acharya has been differing with RBI Governor Shaktikanta Das in the last two Monetary Policy Committee (MPC) meetings on both growth and inflation.
• In the latest monetary policy meeting also, RBI Governor Das and Deputy Governor Acharya differed strongly on the state of fiscal deficit and how to account for that.
• Acharya, who was in charge of the monetary policy department while ending his term warned of the wrath of markets if the autonomy of a central bank was compromised.

About the Reserve Bank of India:

• RBI is India's central banking institution, which controls issuance and supply of the Indian Rupee.
• The RBI began its operations on 1st April 1935 in accordance with the Reserve Bank of India Act, 1934.
• The RBI was nationalised on 1st January 1949, after India gained independence on 15th August 1947.
• Until the Monetary Policy Committee was established in 2016, it also controlled the monetary policy in India.

Question:

Q. Which Deputy Governor of the Reserve Bank of India (RBI) has resigned from his position 6 months before the end of his term?
a. Viral Acharya
b. M.K. Jain
c. N.S. Vishwanathan
d. B.P. Kanungo