Home / BUSINESS / RBI’s deputy governor Viral Acharya quits six months before his term ends – Economic Times

RBI’s deputy governor Viral Acharya quits six months before his term ends – Economic Times

Viral Acharya who had made a fervent pitch for autonomy for the regulator, has reportedly quit six months before the scheduled end of his term.

Acharya, who joined the central bank on January 23, 2017, was RBI‘s youngest deputy governor post economic liberalisation.

ET has independently confirmed that Acharya has quit and would be heading to the New York University to teach. He would be joining his family which he has been away from.

Acharya has been uncomfortable ever since the exit of Urjit Patel as Governor of RBI. His academic views of the financial system was in contrast with the rest of the system.

In fact, Dr. Acharya has been differing with the Governor in the last two monetary policy meetings on both growth and inflation.

In the latest monetary policy meeting, Governor Das and Dr Acharya differed strongly on the state of the fiscal deficit and how to account for that.

While Governor Das said that it was unfair to club the borrowings of state-run enterprises into the state of fiscal deficit, Acharya said that the borrowing requirement of PSUs matter to the overall deficit.

Seniormost Deputy governor N Vishwanathan, who was to retire next month, may be asked to stay back. On October 26 last year, Acharya had spoken about the need to preserve the autonomy of the RBI.

In the over 90-minute long speech, Acharya, who was incharge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank was compromised. Acharya had explicitly said he had the backing of the then Governor Patel for making the speech.

RBI’s deputy governor Viral Acharya quits six months before his term ends – Economic Times

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