Viral Acharya, Deputy Governor, Reserve Bank of India (RBI) has resigned from the role, before his term ends on January 20, 2020. He will be returning to New York University Stern School of Business in August, 2020.
"I have decided to leave six months early due to unavoidable personal reasons. So much to finish in the last month! I am sticking to my school teacher's advice: when your work speaks for itself, don't interrupt," said Acharya.
It was on 23 January 2017 that Acharya was appointed as the RBI’s Deputy Governor by government for a three-year term. He then worked closely with previous Governor, Urjit Patel.
In October 2018, he made news when he raised concern over the importance of RBI's independence. Since then one can observe nonalignment between his views and that of the other stakeholders.
Acharya had stressed the importance of a central bank’s independence and said direct intervention and interference by the government in the operational mandate of the central bank negates its functional autonomy. At the time, the RBI and government had been engaged in a cold tussle over various issues, especially on decisions pertaining to use of RBI's excess reserves.
Even after Urjit Patel's exit, Acharya continued to strongly voice his differences with new RBI governor Shkatikanta Das over slow growth and inflation. Acharya had voted for a pause in during the April MPC but a decision was taken to further cut key lending rates.
While Acharya has shared that he is leaving for personal reasons, these differences in thought processes might have impacted his decision. This shows how for any organization, team or even country it is important that all leaders work together in symphony. It is also crucial that voices and opinions of each leader should be heard and their suggestions should be given due respect. If the leaders do not feel welcomed by other key decision makers, then disengagement follows and they start looking out for other opportunities.
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