Urjit Patel resigns as RBI governor

[Ashwin]

Mumbai: Reserve Bank of India (RBI) governor Urjit Patel on Monday resigned from the post citing personal reasons. “On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years,” he said in a brief statement.

Patel took charge as the RBI governor on 4 September 2016 after Raghuram Rajan resigned from the post on 19 June of that year. Patel’s term as RBI governor was to end in September 2019.

Urjit Patel’s resignation is effective immediately.

 

[vstol Jockey]

Good riddance

 

[Guynextdoor]

I think Modiji or Yogiji should become RBI governor.

Good riddance

you think he is bad? Wait until modi moves his favorite candidate into position as RBI chief....S Gurumurthy...with him our ecocnomy will be in safest hands.

 

[vstol Jockey]

you think he is bad? Wait until modi moves his favorite candidate into position as RBI chief....S Gurumurthy...with him our ecocnomy will be in safest hands.

Urjit Patel's lid was blown and he got exposed completely. He was not in a position to explain his actions anymore as the economy has become very stable and the kind of monetory policy bering followed by him was impacting our growth by 2-2.5%. 7.5 is not what our economy should have now but we must be growing at 9-9.5% and he was working to ensure that we perform well below par.
Lomg back a lawyer friend told me a joke. The son of a very rich guy murdered his lover. Her went looking for a very good lawyer to defend his son. Most directed him to a young guy who had little exp but was excellent with his arguments and knowledge of law but he charged just 50k for the case. This rich guy said how can a lawyer charging just 50k be a good lawyer. He went and hired a 1000k lawyer. His son was finally sentenced to death. As he came out of the court, this young lawyer asked him- Kya hua?, The man replied- Phaansee ho gayi. The young lawyer replied- Main yeh kaam sirf 50K main karwa deta, lakhon spend karnay kee kya jaroorat thee.
A stupid will never harm you as much as a very learned cheat will. This was my reason for saying that I will appoint an uneducated Jaat from Haryana as RBI governor. The uneducated will listen to educated and even if he goes wrong he will not cause as much damage as his intentions are clean but a person who knows the tricks will cause you real damage because his intentions are to damage you.

 

[Himanshu]

This is a sad news forcing him to resign though its still better than using section 7.

I'm starting to hate this gov especially on economic front.

 

[Guynextdoor]

Urjit Patel's lid was blown and he got exposed completely. He was not in a position to explain his actions anymore as the economy has become very stable and the kind of monetory policy bering followed by him was impacting our growth by 2-2.5%. 7.5 is not what our economy should have now but we must be growing at 9-9.5% and he was working to ensure that we perform well below par.
Lomg back a lawyer friend told me a joke. The son of a very rich guy murdered his lover. Her went looking for a very good lawyer to defend his son. Most directed him to a young guy who had little exp but was excellent with his arguments and knowledge of law but he charged just 50k for the case. This rich guy said how can a lawyer charging just 50k be a good lawyer. He went and hired a 1000k lawyer. His son was finally sentenced to death. As he came out of the court, this young lawyer asked him- Kya hua?, The man replied- Phaansee ho gayi. The young lawyer replied- Main yeh kaam sirf 50K main karwa deta, lakhon spend karnay kee kya jaroorat thee.
A stupid will never harm you as much as a very learned cheat will. This was my reason for saying that I will appoint an uneducated Jaat from Haryana as RBI governor. The uneducated will listen to educated and even if he goes wrong he will not cause as much damage as his intentions are clean but a person who knows the tricks will cause you real damage because his intentions are to damage you.

Isn't it strane that decisions that rank amateurs like us can take a PHD is unable to take. And how strange that every year before you'd hear about RBI governor only once every 3 montsh when he takes decisions on interest rates and now you hear about them every day- not jus this guy but also the one before him, and also the board because it's been staffed by looneys like Gurumurthy who should be kept away from economic policy like the bubonic plague?

 

[vstol Jockey]

Isn't it strane that decisions that rank amateurs like us can take a PHD is unable to take. And how strange that every year before you'd hear about RBI governor only once every 3 montsh when he takes decisions on interest rates and now you hear about them every day- not jus this guy but also the one before him, and also the board because it's been staffed by looneys like Gurumurthy who should be kept away from economic policy like the bubonic plague?

yes, you are correct but somehow most PHD in economics end up doing a job and most businesses are owned and headed by people from non-financial backgrounds. Urjit Patel was an employee of Mukesh Ambani.
Nearly every business was suffering due to lack of credit and many businessmen who could have sailed thru were declared defaulters under new NPA rules. MSMEs which employ the largest number of people suffered the most as even the credit flow to the NBFCs which are the biggest lenders to MSMEs were denied credit. The aim was to somehow create a false distress in the economy and both these cheats nearly succeeded in their game. However best laid plans of mice and men go awry no matter how well they are planned. India came out of Demo in record time and it did not cause as big a set back as was expected and the GST tax collections have grown rapidly in shorter time than what was expected.
Why did it happen? It happened because the black economy got formalised even though we did not catch as many black marketeers and we had a very large tax evasion system in place which came into tax net due to GST. Though we are still far short of actual GST figures but the faster recovery shows that a very large amount of taxes were not paid. tax evasion was the norm and not tax compliance. These are the reasons why the economy suffered minimum damage due to these path breaking reforms.
I recently had to undergo IT scrutiny for my businesses for the AY 2011-2012 and I was shocked to see that IT dept had complete data of each and every transaction my companies did anywhere within India and also abroad including the data of all those with whom I did those transactions with. My own/personal bank records and of my wife were also with them. I have always done my businesses in clean manner and finally IT dept had to drop the proceedings against me. What shocked me the most was the amount of details they had. Now everything is fully connected within the financial network system of India and IT can track anything from anywhere. If you withdraw large cash and buy things in cash, they will know how much of the withdrawn cash has been used for shopping and how much has been stashed up. Not only that, if you have an undeclared source of income, your payments for services like electricity, water, food, fuel and shopping etc are all complied and your income can be tracked very easily. You may not pay income tax but the seller is collecting GST and submitting it to the Govt with details of all transactions.

 

[Guynextdoor]

yes, you are correct but somehow most PHD in economics end up doing a job and most businesses are owned and headed by people from non-financial backgrounds. Urjit Patel was an employee of Mukesh Ambani.
Nearly every business was suffering due to lack of credit and many businessmen who could have sailed thru were declared defaulters under new NPA rules. MSMEs which employ the largest number of people suffered the most as even the credit flow to the NBFCs which are the biggest lenders to MSMEs were denied credit. The aim was to somehow create a false distress in the economy and both these cheats nearly succeeded in their game. However best laid plans of mice and men go awry no matter how well they are planned. India came out of Demo in record time and it did not cause as big a set back as was expected and the GST tax collections have grown rapidly in shorter time than what was expected.
Why did it happen? It happened because the black economy got formalised even though we did not catch as many black marketeers and we had a very large tax evasion system in place which came into tax net due to GST. Though we are still far short of actual GST figures but the faster recovery shows that a very large amount of taxes were not paid. tax evasion was the norm and not tax compliance. These are the reasons why the economy suffered minimum damage due to these path breaking reforms.
I recently had to undergo IT scrutiny for my businesses for the AY 2011-2012 and I was shocked to see that IT dept had complete data of each and every transaction my companies did anywhere within India and also abroad including the data of all those with whom I did those transactions with. My own/personal bank records and of my wife were also with them. I have always done my businesses in clean manner and finally IT dept had to drop the proceedings against me. What shocked me the most was the amount of details they had. Now everything is fully connected within the financial network system of India and IT can track anything from anywhere. If you withdraw large cash and buy things in cash, they will know how much of the withdrawn cash has been used for shopping and how much has been stashed up. Not only that, if you have an undeclared source of income, your payments for services like electricity, water, food, fuel and shopping etc are all complied and your income can be tracked very easily. You may not pay income tax but the seller is collecting GST and submitting it to the Govt with details of all transactions.

if the economy is *censored*ed up you need to take the tough decisions that are needed to fix it. It's as simple as that. His job is to look at the economy as a whole and make sure the decisions tht affect them. Now one aspect. And no- become a big trader does not mean he can a run an economy. that's justa plain fact. Do not regurgitate this idea of common sense trumping this man's pHD- it doesn't. Common sense got us demonetization. Phd made sure that Urjit patel opposed it- that's his job. And he's been booted out because he no longer preferred to lie and comply with the interferece. And the moron who Modi got into the board messed up an entire bank (ING Vysya) by bring in commonsensical theories of how people should take pride of their caste and not 'mingle'. - Net result was a frankenstin monster- Both Karur Vysya got into trouble and ING messed up. Leave this stuff to the experts. They've done a wayyyy better job than commonsensical PM.

 

[vstol Jockey]

if the economy is *censored*ed up you need to take the tough decisions that are needed to fix it. It's as simple as that. His job is to look at the economy as a whole and make sure the decisions tht affect them. Now one aspect. And no- become a big trader does not mean he can a run an economy. that's justa plain fact. Do not regurgitate this idea of common sense trumping this man's pHD- it doesn't. Common sense got us demonetization. Phd made sure that Urjit patel opposed it- that's his job. And he's been booted out because he no longer preferred to lie and comply with the interferece. And the moron who Modi got into the board messed up an entire bank (ING Vysya) by bring in commonsensical theories of how people should take pride of their caste and not 'mingle'. - Net result was a frankenstin monster- Both Karur Vysya got into trouble and ING messed up. Leave this stuff to the experts. They've done a wayyyy better job than commonsensical PM.

I am willing to agree to each of your points provided you please explain to me why the same set of people or the Duo was happy with FD of 6%, inflation of 11% and much lower reserves with RBI in 2011-12? If in those tough conditions they were happy with such dismal reserves, what makes them suddenly so cautious when FD is 3%, inflation 3.6% and reserves with RBI are nearly double of 2011-12? Please explain and enlighten me. I am as confused as you are. But somehow nearly every Director on the Board of RBI has opposed Urjit Patel in last board meeting and Govt had no need to invoke rule-7 which is a constitutional power given to Govt to deal with such situations wherein the RBI governor starts acting against the interests of the nation. I hope you know that we have constitutional provisions to even impeach the CJI and also President of India? Why did our constitutional experts include those sections within our constitution?

 

[Guynextdoor]

I am willing to agree to each of your points provided you please explain to me why the same set of people or the Duo was happy with FD of 6%, inflation of 11% and much lower reserves with RBI in 2011-12? If in those tough conditions they were happy with such dismal reserves, what makes them suddenly so cautious when FD is 3%, inflation 3.6% and reserves with RBI are nearly double of 2011-12? Please explain and enlighten me. I am as confused as you are. But somehow nearly every Director on the Board of RBI has opposed Urjit Patel in last board meeting and Govt had no need to invoke rule-7 which is a constitutional power given to Govt to deal with such situations wherein the RBI governor starts acting against the interests of the nation. I hope you know that we have constitutional provisions to even impeach the CJI and also President of India? Why did our constitutional experts include those sections within our constitution?

I don't think you have to ask me those questions....RBI publishes detailed reasons for their actions as reports. You will find answers there.
Having a constitutional provision means using it in extreme emergencies. Surely the provision that India did not use during the balance of payments crisis - which was much much worse than today when India is still running a 7% growth rate need not be used now. This is like declaring emergency because BJP is about lose 4 states (which they are). Is it an emergency for BJP for sure but not for India. This is what happens when you put too many people with 'pure common sense' running the economy.

Fact- Like Rajan they wanted Patel out because he wouldn't let them take political decisions. They'd like him to set the kind of interest rates that would let them win elections, he'd like to set the rates that make you and me have a stable life over the longer term. We let jokers like Gurumurthy set the agenda- we might as well let loose the bubonic plague....

 

[Guynextdoor]

@vstol Jockey remember India and China is the only country in BRICS that continues to grow. Surely you don't want to go the way of severa other countries where political interference ruined everything. Surely the bankers did a stellar job or else we wouldn't be where we are now.

 

[vstol Jockey]

I don't think you have to ask me those questions....RBI publishes detailed reasons for their actions as reports. You will find answers there.
Having a constitutional provision means using it in extreme emergencies. Surely the provision that India did not use during the balance of payments crisis - which was much much worse than today when India is still running a 7% growth rate need not be used now. This is like declaring emergency because BJP is about lose 4 states (which they are). Is it an emergency for BJP for sure but not for India. This is what happens when you put too many people with 'pure common sense' running the economy.

Hindu growth rate of 3.5-5% was earlier norm but now these two jokers tried to peg Hindu growth rate to 6-7.5% and failed. Chor ka bhai utaidigir is an old Hindi proverb and let us see what TOIlet and bigger cheat have to say about his resignation.
All Indians should be concerned, says ex-RBI governor Rajan on Urjit Patel's resignation - Times of India
Urjit Patel quits RBI: The 'vigilant owl' flies out amid differences with government - Times of India ►
TOIlet Jain hold largest amount of real estate in India and have made a business out of news reporting. Do you know how do they operate? In 2010 they came to me and asked me for equity to promote me and my airline. They said they wanted only equity in benaami way and will ensure that I am well known all over the world. I refused. TOIlet never ever published any article about me or my airline.

@vstol Jockey remember India and China is the only country in BRICS that continues to grow. Surely you don't want to go the way of severa other countries where political interference ruined everything. Surely the bankers did a stellar job or else we wouldn't be where we are now.

Yes but please tell me what are the fundamentals of Chinese economy vis a vis Indian economy? which is stronger? AND finally why only the two among BRICS? What drives these two economies?

 

[vstol Jockey]

Geeta Gopinath is taklng over as CE in IMF and a job has been created for Urjit Patel there by his Chor bhai Raghuram Rajan. This is the reason for his sudden resignation. When any of our spies is likely to be exposed or under suspicion, we also exfiltrate them and IMF is doing the same by taking in Urjit Patel. The Spy got exposed.

 

[Bharath]

Hindu growth rate of 3.5-5% was earlier norm but now these two jokers tried to peg Hindu growth rate to 6-7.5% and failed.

with all due respects - please stop calling this Hindu growth rate.

the Hindu growth rate was when the Hindu's share of the world trade was #1. or #2.

that 3% was more "Nehru growth rate". blaming all ills on the Hindus while all the great stuff on shit politicians has become a bane. lets identify the correct people responsible for these stuff - even if its a good thing or bad.

Back to topic - Gurumurthy explained what he thinks needs to be done - I havent heard Urjit Patel's argument on why it should not be done. I havent been able to decide my stand why the reserves at RBI need to be touched or left alone after hearign Gurumurthy - but I havent been opposed to it. I want to see what happens next and then decide if this is a good thing or bad.

@vstol Jockey remember India and China is the only country in BRICS that continues to grow. Surely you don't want to go the way of severa other countries where political interference ruined everything. Surely the bankers did a stellar job or else we wouldn't be where we are now.

are you saying the Chinese do not interfere in their central bank's functioning? Then how do you explain the now world famous "china manipulates currency" approach? if thats not the govt trying to use Economy as its tool in foreign policy then what is?

and you are right - apart from China and India - everyone in BRICS has faltered - so should we not go the China way?

 

[vstol Jockey]

and you are right - apart from China and India - everyone in BRICS has faltered - so should we not go the China way?

China took well calculated risks all along which have paid them well. On paper they look worst but look at their reserves which are nearly 50% of their dollar economy. They are using those reserves to leverage higher lending to businesses and also provide subsidy for exports. China has not gone for full convertibility of its currency but we Indians did due to idiots like Raghuram Rajan and MMS. What has Trump achieved by raising taxes on Chinese goods?nothing. His entire manufacturing is now in China. Even the goddamn F-35 has chinese parts in it.

 

[Bharath]

I would like to float this idea of a debate here -

why should we use a part of the forex reserves for infrastructure projects? (not whole of the reserves - but a certain part of it)
this could be a replacement for us instead of payign the ADB/WB for these projects hefty interest rates, we could pay the interest back to RBI itself. thats like paying back our own people for building our own country (please give me some valid points against this. I am genuinely interested to learn and debate - not blindly support one view over the other)

Gurumurthy in his speech says the amount of rupee being printed is directly related to amount of dollars coming into the RBI or into India as investment via FII - is this true? if yes - shouldnt India decide how much money needs to be printed?
Smaller economies peg their currencies against bigger economies (like the $) to create confidence among investors - this is what I have seen. why should India' currency be pegged at how much $ comes into the system? (please let me know if this is even true - I am trying to find sources for this claim by Gurumurthy).

 

[STEPHEN COHEN]

Is the RBI answerable to anybody or not

The Entire Responsibility for the Economy
Is with the Govt

RBI is just another department

We have a very strong media including
Economic experts
Which can point out the mistakes of any Govt

RBI had become obsessed with Inflation
Management only

 

[STEPHEN COHEN]

I would like to float this idea of a debate here -

why should we use a part of the forex reserves for infrastructure projects? (not whole of the reserves - but a certain part of it)
this could be a replacement for us instead of payign the ADB/WB for these projects hefty interest rates, we could pay the interest back to RBI itself. thats like paying back our own people for building our own country (please give me some valid points against this. I am genuinely interested to learn and debate - not blindly support one view over the other)

Gurumurthy in his speech says the amount of rupee being printed is directly related to amount of dollars coming into the RBI or into India as investment via FII - is this true? if yes - shouldnt India decide how much money needs to be printed?
Smaller economies peg their currencies against bigger economies (like the $) to create confidence among investors - this is what I have seen. why should India' currency be pegged at how much $ comes into the system? (please let me know if this is even true - I am trying to find sources for this claim by Gurumurthy).

If you are referring to RBI reserves
Which were being demanded by the Govt
These were the Rupee Reserves

That is the profits made by RBI by lending to the Govt

Forex Reserves are separately accounted

 

[vstol Jockey]

If you are referring to RBI reserves
Which were being demanded by the Govt
These were the Rupee Reserves

That is the profits made by RBI by lending to the Govt

Forex Reserves are separately accounted

To all your questions, India is still being looted like it was under Colonialism. Our money is devalued to help so called investors to invest in our system. But China did not follow it and yet managed to get highest ever FDI in their system. A lot needs to be explained about the years of MMS followed by Raghuram Rajan and Urjit Patel. I find no reason why we must buy dollars and create reserves at higher rates rather than use that money to boost our infra and economy. What do we get on our reserves? just about 2-3% returns but we are creating PPP models with over 12% returns in India for investors. We have become slaves yet again due to these policies.

 

[STEPHEN COHEN]

To all your questions, India is still being looted like it was under Colonialism. Our money is devalued to help so called investors to invest in our system. But China did not follow it and yet managed to get highest ever FDI in their system. A lot needs to be explained about the years of MMS followed by Raghuram Rajan and Urjit Patel. I find no reason why we must buy dollars and create reserves at higher rates rather than use that money to boost our infra and economy. What do we get on our reserves? just about 2-3% returns but we are creating PPP models with over 12% returns in India for investors. We have become slaves yet again due to these policies.

The whole dispute with RBI and GOI was about RBI Rupee reserves

Which Govt felt that a part of it can be used for Bank Recapitalization.

Also the dispute was about Lending Freeze
Imposed on some PSU banks