Topic Of The Day:-“Shock Resignation: On Urjit Patel Quitting As Rbi Chief”

Urjit Patel Stepping Down As RBI Governor Is A Major Embarrassment For The Government

The Reserve Bank of India Governor Urjit Patel has cited personal reasons for resigning with immediate effect, but anyone who has followed the events of the last couple of months will know it was anything but that. It was a period during which the Centre and the RBI were engaged in an unseemly tussle over a clutchof issues that had a bearing on the RBI’s autonomy, something that Mr. Patel had sought to preserve. As his predecessor Raghuram Rajan pointed out, when a public servant resigns, it is a sign of protest. Mr. Patel’s decision clearly caught everyone by surprise as it came following perceptions of a thaw in relations between the Centre and the RBI, after an agreement was hammered out at a board meeting last month on some of the contentious issues, including a controversial proposal to use the central bank’s reserves for fiscal purposes. But clearly, the larger issue that divided the Centre and the RBI — which related to autonomy and the independent functioning of the Governor — was never fully resolved. Mr. Patel’s resignation is a serious embarrassment to the NDA government, which has scrambled to make statements expressing surprise at his action and praising him for his work. As attempts to signal that it had nothing to do with Mr. Patel stepping down and to reinforce that he did indeed quit for personal reasons, these remarks were largely unconvincing.

Mr. Patel’s resignation is bound to raise questions about the Centre’s ability to work with independent-minded economists, coming as it does following the departures of former RBI Governor Raghuram Rajan, who was at odds with the Centre on many issues, and the sudden resignations of Niti Aayog Vice-Chairman Arvind Panagariya and Chief Economic Adviser Arvind Subramanian. It is true that Mr. Patel’s reclusiveand non-communicative style may not have endeared him to some bankers, but his eminence as an economist and his understanding of macro-economic issues is undisputed. Governments have sparred with the RBI before on the issue of autonomy, but the NDA government went one step further by starting consultations under Section 7 of the RBI Act, which gives the Centre the power to direct the RBI to act in specific ways. The immediate priority now is for the Centre to fill the breach without wasting time. Global investors and the markets are already on edge, and they will be keenly watching, along with the ratings agencies, how the Centre handles this self-created crisis. The incoming Governor is bound to be judged, among other things, by perceptions about his independence. The RBI cannot be treated as if it is just another government department. And the Centre will now need to demonstrate that a post-Patel central bank will continue to enjoy operational autonomy. Anything less will not go down well with both investors and the markets.



1) cited

Meaning : refer to (a passage, book, or author) as evidence for or justification of an argument or statement, especially in a scholarly work.

Synonyms : allege

Antonyms : conceal

Example : “authors who are highly regarded by their peers tend to be cited”

2) tussle

Meaning : a vigorous struggle or scuffle, typically in order to obtain or achieve something.(n)

Synonyms :struggle

Antonyms : consensus

Example : “there was a tussle for the ball”

3) clutch

Meaning : a tight grasp.(n)

Synonyms : grasp

Antonyms : abandon

Example : “she made a clutch at his body”

4) bearing

Meaning : a person’s way of standing or moving(n).

Synonyms : carriage

Antonyms : irrelevance

Example : “a man of precise military bearing”

5) perceptions

Meaning : the ability to see, hear, or become aware of something through the senses.

Synonyms : notions

Antonyms : ignorances

Example : “the normal limits to human perception”

6) thaw

Meaning : become liquid or soft as a result of warming up.

Synonyms : melt

Antonyms : freeze

Example : “the river thawed and barges of food began to reach the capital”

7) hammered

Meaning : hit or beat (something) repeatedly with a hammer or similar object.(v)

Synonyms : forged

Antonyms : sober

Example : “he hammered the tack in”

8) contentious

Meaning : causing or likely to cause an argument; controversial(adj).

Synonyms : combative

Antonyms : pacifist

Example : “a contentious issue”

9) controversial

Meaning : giving rise or likely to give rise to controversy or public disagreement.

Synonyms : disputable

Antonyms : agreeable

Example : “years of wrangling over a controversial bypass”

10) resolved

Meaning : firmly determined to do something.

Synonyms : determined

Antonyms : undecided

Example : “Constance was resolved not to cry”

11) scrambled

Meaning : make one’s way quickly or awkwardly up a steep gradient or over rough ground by using one’s hands as well as one’s feet.”we scrambled over the damp boulders”(v)

Synonyms : jumbled

Antonyms : goodish

Example : “we scrambled over the damp boulders”

12) reinforce

Meaning : strengthen or support (an object or substance), especially with additional material.(v)

Synonyms : strengthen

Antonyms : weaken

Example : “the helmet has been reinforced with a double layer of cork”

13) indeed

Meaning : used to emphasize a statement or response confirming something already suggested.

Synonyms : truly

Antonyms : conversely

Example : “it was not expected to last long, and indeed it took less than three weeks”

14) reclusive

Meaning : avoiding the company of other people; solitary.

Synonyms : secluded

Antonyms : outgoing

Example : “he led a reclusive life”

15) endeared

Meaning : cause to be loved or liked.

Synonyms : dear

Antonyms : outcast

Example : “Flora’s spirit and character endeared her to everyone who met her”

16) eminence

Meaning : fame or acknowledged superiority within a particular sphere.

Synonyms : prominence

Antonyms : inferiority

Example : “her eminence in cinematography”

17) disputed

Meaning : argue about (something).

Synonyms : argued

Antonyms : accepted

Example : “the point has been much disputed”

18) breach

Meaning : an act of breaking or failing to observe a law, agreement, or code of conduct.(n)

Synonyms : break

Antonyms : bridge

Example : “a breach of confidence”