India’s central bank chief Urjit Patel has resigned from his position citing “personal reasons”.
Patel resignation comes amid reports of a rift between the Reserve Bank of India (RBI) and Prime Minister Narendra Modi’s government.
The resignation marks a rare case of a serving governor leaving his job midway through his three-year term.
Local Correspondents believe that the move is likely to undermine confidence in the economy and cause the rupee to fall.
Although India’s $2.6tn (€2.3tn; £2tn) economy has recently been boosted by a strong performance in consumer spending and manufacturing, the rupee has already fallen significantly against the surging dollar so far this year, private investment remains slack and there are doubts on whether the economy will accelerate further, says the BBC’s Soutik Biswas in Delhi.
Meanwhile, India will vote in a general election in the first half of next year, with polls due by May.
In a statement announcing his resignation, the outgoing governor Patel thanked his staff and officers, calling them the reason for the “bank’s considerable accomplishments in recent years”.
Furthermore, mere speculations has been surrounds for weeks that Patel could resign over government pressure on the bank.