RBI’s institutional capabilities strong, will do whatever is required for economy: Rajiv Kumar

NEW DELHI, DEC 11

A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice-Chairman Rajiv Kumar on Tuesday said the central bank’s institutional capabilities are ‘very strong’ and it will do whatever is required for the markets and economy.

Kumar further said although Patel has done amazing work in the last two years as RBI Governor, the functioning of the central bank is not dependent on any particular individual.

“RBI’s institutional capabilities are very strong and they will do whatever is required for the markets and economy.

“The fact is that RBI itself is such a professional institution, and such a long-standing institution that you know, the business will continue,” Kumar said on the sidelines of an event here.

Patel, who had a run-in with the government over autonomy of the central bank, resigned from his job on Monday, citing personal reasons. The Niti Aayog Vice-Chairman also assured that the government will do whatever is required to continue its business

as usual. Commenting on the weakening of the rupee after Patel’s resignation, Kumar said: “The government also, I am sure, is seized of the matter and will take care whichever way it’s possible.”

The rupee plunged by a significant 110 paise in early trade on Tuesday as domestic equities saw a heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

Source: Business Line