New Delhi: Former Reserve Bank of India (RBI) Governor Raghuram Rajan on Monday termed Urjit Patel’s resignation as a ‘mark of protest’ and said that every Indian must be concerned, implying the humongous problem. Also Read - ‘No Revenue Loss For NBFCs on 3-Month Moratorium on Loan Repayments'

“Believe resignation of RBI Governor Urjit Patel is a matter of great concern. Resignation by a government servant is a note of protest when faced with circumstances they cannot deal with,” said Rajan. “All Indians should be concerned about governor Patel’s resignation,” he added. Also Read - RBI EMI Moratorium: What Way it is Going to Benefit You | Here's Everything You need To Know



Patel, who cited personal reasons behind his decision, was in a conflict with the finance ministry over matters related to the bank’s independence. Also Read - RBI Announces Second Targeted Long Term Repo Operation, Extends Fixed Rate Reverse Repo

“On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years,” the governor said in a statement.



“The support and hard work of RBI staff, officers and management have been the proximate driver of the Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future,” he said.

The statement came after Patel stepped down from his post citing personal reasons. Patel’s resignation comes days after Finance Minister Arun Jaitley’s scathing criticism of the central bank’s “lending spree”.

There were speculations going on recently that Patel could resign due to a rift between the government and RBI. The government had demanded a relaxation in PCA norms for banks, so they can lend more. The Finance Ministry reportedly wrote to the central bank invoking Section 7 of the Banking Regulation Act (RBI), which states that directions can be issued to RBI. RBI was reluctant to do so initially, however, after a Board meeting, it loosened certain norms.