Moneycontrol
Last Updated : Dec 10, 2018 07:54 PM IST | Source: Moneycontrol.com

Epic RBI vs FM battles: Last governor to resign before Urjit Patel was in 1990

This article has been updated in the wake of Urjit Patel's resignation as RBI Governor.

Moneycontrol News @moneycontrolcom
The recent spat between Reserve Bank of India (RBI) and the government is not the first time the two have locked horns over the central bank's autonomy. RBI Governors in the past also have had public feuds with the government over a number of issues. (Image: Reuters)
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The recent spat between Reserve Bank of India (RBI) and the government is not the first time the two have locked horns over the central bank's autonomy. RBI Governors in the past also have had public feuds with the government over a number of issues. (Image: Reuters)

Urjit Patel | Term: 2016-2018 | Urjit Patel resigned as RBI Governor on December 10, citing personal reasons. Relations between the RBI and the government have been strained since October, when reports emerged that the Finance Ministry was mulling using Section 7 of the RBI Act. The contentious clause, which has never been used till date, empowers the government to direct the central bank to undertake certain policy measures in public interest, thus undermining the RBI’s independence. Finance Minister Arun Jaitley accused the central bank of failing to prevent bad loans.
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Urjit Patel | Term: 2016-2018 | Urjit Patel resigned as RBI Governor on December 10, citing personal reasons. Relations between the RBI and the government have been strained since October, when reports emerged that the Finance Ministry was mulling using Section 7 of the RBI Act. The contentious clause, which has never been used till date, empowers the government to direct the central bank to undertake certain policy measures in public interest, thus undermining the RBI’s independence. Finance Minister Arun Jaitley accused the central bank of failing to prevent bad loans.

Benegal Rama Rau | Term: 1949-1957 | He resigned after a public feud with the then finance minister TT Krishnamachari. The trigger for Rau's resignation was Krishnamachari’s decision to levy stamp duty on bills.
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Benegal Rama Rau | Term: 1949-1957 | He resigned after a public feud with the then finance minister TT Krishnamachari. The trigger for Rau's resignation was Krishnamachari’s decision to levy stamp duty on bills.

Manmohan Singh | Term: 1982-1985 | Singh wanted to quit during his tenure as RBI Governor, when Pranab Mukherjee was Finance Minister. Singh's offer to quit had reportedly come after he was pressurised to allow the now-defunct Bank of Credit and Commerce International to open a branch in Mumbai.
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Manmohan Singh | Term: 1982-1985 | Singh wanted to quit during his tenure as RBI Governor, when Pranab Mukherjee was Finance Minister. Singh's offer to quit had reportedly come after he was pressurised to allow the now-defunct Bank of Credit and Commerce International to open a branch in Mumbai.

R N Malhotra | Term: 1985-1990 | In the 1980s, India was faced with a burgeoning import bill, which precipitated a balance of payments crisis. This culminated in a bailout by the IMF and necessitated economic reforms recommended by it, including the liberalization of India's economy. Malhotra had alerted the government of an impending crisis in 1988, but his warnings went unheeded. He resigned in 1990 after his relationship with the then finance minister Yashwant Sinha became untenable.
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R N Malhotra | Term: 1985-1990 | In the 1980s, India was faced with a burgeoning import bill, which precipitated a balance of payments crisis. This culminated in a bailout by the IMF and necessitated economic reforms recommended by it, including the liberalization of India's economy. Malhotra had alerted the government of an impending crisis in 1988, but his warnings went unheeded. He resigned in 1990 after his relationship with the then finance minister Yashwant Sinha became untenable.

Yaga Venugopal Reddy | Term: 2003-2005 | Reddy worked with two finance ministers - NDA's Jaswant Singh and UPA's P Chidambaram. He had public disagreements or "creative tension" with Chidambaram over monetary policy.
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Yaga Venugopal Reddy | Term: 2003-2005 | Reddy worked with two finance ministers - NDA's Jaswant Singh and UPA's P Chidambaram. He had public disagreements or "creative tension" with Chidambaram over monetary policy.

Duvvuri Subbarao | Term: 2008-2013 | D Subbarao batted for the central bank's autonomy with both P Chidambaram and Pranab Mukherjee during their terms as Finance Minister. In his book 'Who Moved My Interest Rate?: Leading the Reserve Bank of India Through Five Turbulent Years', Subbarao addresed his differences with the UPA government.
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Duvvuri Subbarao | Term: 2008-2013 | D Subbarao batted for the central bank's autonomy with both P Chidambaram and Pranab Mukherjee during their terms as Finance Minister. In his book 'Who Moved My Interest Rate?: Leading the Reserve Bank of India Through Five Turbulent Years', Subbarao addresed his differences with the UPA government.

Raghuram Rajan | Term: 2013-2016 | Rajan disagreed with Finance Minister Arun Jaitley on a number of issues. BJP MP Subramanian Swamy was a vocal critic of Rajan, even asking for Rajan's removal from the post before his tenure ended. The government did not give him an extension amid reports that it wasn't happy with Rajan's interest rate policy, and his public remarks on non-economic issues.
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Raghuram Rajan | Term: 2013-2016 | Rajan disagreed with Finance Minister Arun Jaitley on a number of issues. BJP MP Subramanian Swamy was a vocal critic of Rajan, even asking for Rajan's removal from the post before his tenure ended. The government did not give him an extension amid reports that it wasn't happy with Rajan's interest rate policy, and his public remarks on non-economic issues.

First Published on Nov 10, 2018 07:00 pm
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