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.
MEANINGS AND WORDS
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”
