Mumbai: Reserve Bank of India (RBI) Deputy Governor Viral Acharya has resigned six months before the scheduled end of his term in office, citing personal reasons, the central bank said on Monday, confirming a media report.
Acharya’s departure was not surprising as he had previously clashed with Prime Minister Narendra Modi’s government over an erosion of the central bank’s independence.
His resignation would also mean the RBI is likely to be more dovish over monetary policy and willing to cut interest rates, economists said. Acharya, who is in charge of departments that look at monetary policy and exchange rate markets, had been regarded as more of an inflation hawk.
Acharya submitted his resignation letter a few weeks ago saying he was unable to continue his term beyond July 23 due to unavoidable personal circumstances, the RBI said in a news release.
