New Delhi: Reserve Bank of India (RBI) Deputy Governor, Viral Acharya has reportedly resigned six months before the scheduled end of his term. Acharya had joined RBI on January 23, 2017. He was the youngest deputy governor post economic liberalisation.Reports claimed that Acharya is returning to the New York University Stern School of Business (NYU–Stern) in August instead of February next year.
Reports of his resignation come days after the latest monetary policy meeting, wherein Acharya had differed strongly with Governor Das on the state of the fiscal deficit. While Das had said that it was unfair to club the borrowings of state-run enterprises into the state of fiscal deficit, Acharya asserted that the borrowing requirement of PSUs matter to the overall deficit.
If reports come true, this would be the second high profile resignation in the past six month at the Reserve Bank of India (RBI). In December, governor Urjit Patel resigned nearly nine months before the end of his schedule term over differences with the government.
In October 2018, Acharya’s speech on the need for RBI’s independence had hit the headlines.
In the over 90-minute long speech, Acharya, who was in charge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank is compromised. He had explicitly said he had the backing of former RBI governor Urjit Patel for making the speech.
Acharya had completed his BTech in Computer Science and Engineering from IIT Mumbai in 1995. He has done PhD in finance from NYU–Stern in 2001.
Before joining Stern, Acharya was at London Business School (2001–2008), the Academic Director of the Coller Institute of Private Equity at LBS (2007–09) and a Senior Houblon–Normal Research Fellow at the Bank of England (Summer 2008).