Reserve Bank of India (RBI) governor Urjit Patel resigned for "personal reasons" on Monday, a decision analysts linked to intense pressure on the central bank from the government to ease regulatory curbs.
"On account of personal reasons, I have decided to step down from my current position effective immediately," Mr Patel said in a statement on the RBI website after financial markets had closed.
Analysts and market watchers said the recent dispute between the RBI and the government could have been a major factor in Mr Patel's decision to resign.
"Quite clearly the resignation of Urjit Patel shows that nothing has changed," said Yashwant Sinha, a former finance minister and member of the ruling Bharatiya Janata Party.
"The resignation is a clear sign of the government trying to interfere with the working of the RBI," he added.
Prime Minister Narendra Modi's government has been putting pressure on the RBI to ease its regulatory curbs on some banks, infuse more liquidity and relax capital norms as it faces a slowing economy ahead of general elections due by May.
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Read more:
Indian stocks continue fall as RBI stays hand on key policy rate
Indian government and RBI avert crisis but deep problems linger
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RBI Deputy governor Viral Acharya said in a speech in October that undermining a central bank's autonomy could be "catastrophic", prompting a public dispute that added to the rift between the bank and government.
The Modi government has stacked the RBI's 18-member board with its own nominees, in what critics say is a move to exert greater control over the central bank's regulatory powers.
Patel's sudden resignation is expected to roil financial markets on Tuesday. Investors will be keen to know who is Patel's replacement and the direction of the central bank's financial and monetary policy, analysts said.
"Markets certainly will be concerned unless there is further clarification that come through tonight," said R Sivakumar, head of fixed income at Axis Mutual Fund.
"I think tomorrow and over the next few days we can expect heightened volatility in the markets," he added.
Indian rupee one-month forwards slumped 1.6 per cent, the most since August, while stocks and bonds are expected to extend declines Tuesday as investors assess the fallout of the resignation.
“This was completely unexpected coming just ahead of a scheduled board meeting. We will see a knee-jerk selloff in all asset classes Tuesday,” according to Lakshmi Iyer, head of fixed income at Kotak Mahindra Asset Management.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
More on Quran memorisation:
Why the Tourist Club?
Originally, The Club (which many people chose to call the “British Club”) was the only place where one could use the beach with changing rooms and a shower, and get refreshments.
In the early 1970s, the Government of Abu Dhabi wanted to give more people a place to get together on the beach, with some facilities for children. The place chosen was where the annual boat race was held, which Sheikh Zayed always attended and which brought crowds of locals and expatriates to the stretch of beach to the left of Le Méridien and the Marina.
It started with a round two-storey building, erected in about two weeks by Orient Contracting for Sheikh Zayed to use at one these races. Soon many facilities were planned and built, and members were invited to join.
Why it was called “Nadi Al Siyahi” is beyond me. But it is likely that one wanted to convey the idea that this was open to all comers. Because there was no danger of encountering alcohol on the premises, unlike at The Club, it was a place in particular for the many Arab expatriate civil servants to join. Initially the fees were very low and membership was offered free to many people, too.
Eventually there was a skating rink, bowling and many other amusements.
Frauke Heard-Bey is a historian and has lived in Abu Dhabi since 1968.
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
Titan Sports Academy:
Programmes: Judo, wrestling, kick-boxing, muay thai, taekwondo and various summer camps
Location: Inside Abu Dhabi City Golf Club, Al Mushrif, Abu Dhabi, UAE
Telephone: 971 50 220 0326
