RBI denies deputy governor Viral Acharya’s resignation

Mumbai, Dec 11: In the face of strong rumours, a central bank spokesperson refuted reports of RBI deputy governor Viral Acharya resigning from his post soon after his boss Urjit Patel quit on Monday evening.
Acharya has been a key player in the recent turn of events that turned into a battle between the RBI and the government. It was Acharya’s speech on October 26, asserting RBI autonomy and warning the Centre of ‘wrath of the markets’ that brought out the fight into the open.
Acharya, 44, one of the youngest deputy governors at the RBI, was brought in by Patel from New York University’s Stern School of Business in December 2016. His appointment came six months after N S Vishwanathan was elevated to the position of deputy governor. Considering that seniority among deputy governors is measured according to date of appointment, Vishwanathan becomes the senior-most and will head the central bank until the government finds a replacement for Patel.
Had Acharya been the senior-most, the government would have to face an even more awkward situation. In his October 26 speech, Acharya had minced no words in attacking the government. The subsequent revelation that the speech was triggered by initiation of consultations under Section 7 of the RBI Act might have justified the outburst, but past central bankers feel that it was too fiery.