RBI deputy governor Viral Acharya resigns; was against repeated cuts of repo rates to support govt’s public spending, say sources

Mumbai: Reserve Bank of India’s (RBI) Deputy Governor Viral Acharya has quit six months before the end of his term.

Acharya is the third top official to quit RBI before finishing their term. The first being former RBI Governor Raghuram Rajan and second, being former Governor Urjit Patel.

Sources said that Acharya, who joined as the RBI Deputy Governor in January 2017, was against the central bank’s decision on repeated cuts of repo rates to support the government’s public spending and consumption boost measures to tackle the slowing growth.

Acharya viewed such steps as putting fiscal discipline into risk and he did not want to be part of “those decisions”, sources said.

Acharya had joined the central bank on January 23 last year after Patel was elevated to the post of governor in September 2016.

The RBI is now left with three deputy governors NS Vishwanathan, BP Kanungo and MK Jain.

Acharya who once called himself the ‘poor man’s Raghuram Rajan’, was appointed for three years.

He took over at a time when the central bank was facing criticism for repeated changes in the rules related to deposit and withdrawal of money, post-demonetization.

Acharya will be now returning to the New York University’s Stern School of Business in August instead of February 2020.