After a prolonged tussle with the government on a range of issues including autonomy and use of sovereign reserves, Urjit Patel, Chief of India's banking regulatory body, the Reserve Bank of India (RBI) resigned on Monday.
"On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said in his resignation letter which was forwarded to the media also.
Patel's predecessor Raghuram Rajan, whose exit from RBI was also much controversial owing to his open criticism of Modi government's handling of sensitive issues, reportedly tweeted within minutes of Patel's exit saying that "all Indians should be concerned about Governor Patel's resignation."
To control the damage, Prime Minister Narendra Modi and Finance Minister Arun Jaitley took to Twitter to appreciate Patel and his tenure. Modi said, "Patel leaves behind a legacy."
In November, the board of RBI held a marathon meeting for nine hours and the press release after the deliberation ironically said that it ended in a "conciliatory note."
Several senior observers and commentators have expressed concern over the development.