Must have been reasons for Patel's resignation: C. Rangarajan

Chennai : Former Governor of Reserve Bank of India (RBI) C. Rangarajan on Monday said he was "saddened" and "surprised" at the resignation of RBI Governor Urjit Patel.

"It is saddening since the resignation of RBI Governor will have its impact on the financial market. The government should act immediately and appoint a new Governor," Rangarajan told IANS.

The former Governor of Andhra Pradesh, Rangarajan said: "Though he (Patel) has cited as personal reasons for quitting, obviously there must have been some reasons for his resignation."

As to the reason for his surprise, Rangarajan, who is also former Chairman of Prime Minister's Economic Advisory Council during 2009-2014 said: "I had thought many of the issues (between RBI and the Central government) were resolved in the last board meeting of RBI and the remaining issues would also be sorted out."

According to Rangarajan, it looked as if the issues between RBI and the Centre got resolved, with one or two other things remained to be resolved with the appointment of committees.

Rangarajan said whether the RBI to be board driven or not remained to be resolved.

On Monday, RBI Governor Patel announced his resignation with immediate effect citing "personal reasons".

"On account of personal reasons, I have decided to step down from my current position effective immediately," he said in a brief statement released by the RBI.

"It has been my privilege and honour to serve in the RBI in various capacities over the years. The support and hard work of RBI staff, officers and management has been the proximate driver of the Bank's considerable accomplishments in recent years.

"I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board and wish them all the best for the future," Patel said.