Reserve Bank of India Deputy Governor Viral Acharya resigned six months before his term ends. As per reports, Acharya will return to New York University's Stern School of Business in August as CV Starr Professor of Economics. RBI is now left with only three deputy governors -- N S Vishwanathan, BP Kanungo and M K Jain.
Acharya, who was the youngest to become RBI deputy governor in the post-liberalisation era, joined the central bank in 2017 for a term of three years. He played a vital role in backing Urjit Patel, the then RBI Governor, when the central bank locked horns with the government over RBI autonomy.
Acharya, who was fondly called 'the poor man's, Raghuram Rajan', made strong calls for RBI's independence, stating that direct intervention by the government in the central bank's operations created a problem in its functional autonomy. Acharya also voiced concerns over the government's efforts to interfere with the central bank's operations.
Acharya took over the post in RBI after demonetisation, when it was being criticised for repeated changes in the rules related to deposit and withdrawal of money.
While it's clear that Acharya ended up opposing the government on key issues, he had been mulling return to the US as his family has been residing there.
Acharya's resignation is the second high-profile exit in RBI in six months. The earlier exit was of Urjit Patel, who laid down his papers nine months before his scheduled time over differences with the government.