New Delhi, Dec 11: A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar Tuesday said the central bank’s institutional capabilities are ‘very strong’ and it will do whatever is required for the markets and economy.
Kumar further said although Patel has done an amazing work in the last two years as the RBI Governor, the functioning of the central bank is not dependent on any particular individual.
“RBI’s institutional capabilities are very strong and they will do whatever is required for the markets and economy.
“The fact is that RBI itself is such a professional institution, and such a long-standing institution that you know, the business will continue,” Kumar said on the sidelines of ‘Inclusive Finance India Summit’ here.
Patel, who had a run-in with the government over autonomy of the central bank, resigned from his job on Monday, citing personal reasons.
The Niti Aayog vice chairman also assured that the government will do whatever is required to continue its business as usual.
“Patel has done an amazing work in the last two years…But RBI is not dependent on any one particular individual,” Kumar said.
Commenting of weakening of the rupee after Patel’s resignation, Kumar said: “The government also, I am sure, is seized of the matter and will take care whichever way it’s possible”.
The rupee Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.
Addressing the delegate, Kumar said that the financial inclusion must be about employment, job creation and growth.
He also stressed on need to provide greater access to credit in the North East region.
Noting that mobile banking is the strongest method for increasing financial inclusion in the country, Kumar said, “In my view, the future is digital finance and the era of brick and mortar banking is over”.