Current Affairs

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.
RBI Deputy Governor Viral Acharya resigns before term end

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
RBI Deputy Governor Viral Acharya resigns before term ends RBI Deputy Governor Viral Acharya resigns before term ends Reviewed by Neha Verma on June 25, 2019 Rating: 5

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