Viral Acharya Resigns As RBI Deputy Governor

RBI deputy governor Viral Acharya

Viral Acharya, Reserve Bank of India (RBI) Deputy Governor, has quit his role six months before the end of his tenure, said a report on Monday.

Business Standard reported that Acharya is returning to New York University’s Stern School of Business (NYU Stern) in August, instead of February 2020 as CV Starr Professor of Economics.

Till the publishing of this story, an email sent to the RBI remained unanswered.

Viral Acharya joined RBI as a deputy governor in January 2017 and was supposed to end his term after completing three years in this role.

It may be mentioned here that Acharya’s speech on the need for RBI’s independence had made headlines in October 2018, when the government and the central bank were at loggerheads over various issues, including the extent of RBI’s reserves.

Viral Acharya had stressed the importance of a central bank’s independence and said direct intervention and interference by the government in the operational mandate of the central bank negates its functional autonomy.

Many had seen this as Acharya voicing concerns on behalf of the then governor Urjit Patel, who eventually quit a few months later.

Pointing out instances, where undermining the central bank’s independence is regressive, Acharya had said it occurs when the government is seen making efforts to dilute the central bank’s policies.

An RBI board member, commenting on Viral Acharya’s resignation, said, “Viral Acharya had been discussing his return to the US in several informal meetings because his family is there. However, the board hasn’t been apprised as yet. The next board meeting is scheduled for July 8.”

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