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Yet another economist quits govt: RBI Dy Governor Viral Acahrya resigns 6 months before term

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Yet another economist quits govt: RBI Dy Governor Viral Acahrya resigns 6 months before term

[vc_row][vc_column][vc_column_text]RBI Deputy Governor Viral V Acharya has resigned from his post, six months before the scheduled end of his term citing “unavoidable personal circumstances”, said media reports.

Confirming the resignation, the Reserve Bank of India in a statement said, “Due to unavoidable personal circumstances, Viral Acharya is unable to continue as deputy governor beyond July 23. Consequential action arising from his letter is under consideration of the competent authority.”

Acharya was not expecting his term to be renewed in any case, The Indian Express (IE) reported, citing source-based information.

Since Acharya was appointed by Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi, the resignation would also be accepted by the panel.RBI Dy Governor Viral Acahrya resigns 6 months before term

Acharya, 45, joined the central bank in January 2017 and was RBI’s youngest deputy governor, post economic liberalisation. 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-demonetisation.

Also Read: AES deaths in Muzaffarpur: Supreme Court notice to Bihar govt to respond within a week

His term was scheduled to end in February next year, said media reports. Acharya will be returning to New York University as CV Starr Professor of Economics. Acharya was called as the poor man’s Rajan over the many similarities with the former Governor Raghuram Rajan, who also left RBI against his wishes to continue.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1561367870691{border-top-width: 10px !important;border-right-width: 10px !important;border-bottom-width: 10px !important;border-left-width: 10px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;background-color: #dbdbdb !important;border-radius: 10px !important;}”][vc_column][vc_column_text]

Economists/Experts who quit:

June 2019 – RBI Dy Governor Viral Acharya resigns

Jan 2019 – The last two non-official members of National Statistical Commission resign over job data differences

Dec 2018 – RBI Governor Urjit Patel resigns amid tension with government

June 2018 – Chief Economic Advisor Arvind Subramanian resigns, recently claimed GDP growth rate was way below that claimed

Aug 2017 – NITI Aayog vice chairman Arvind Pangaraiya resigns

June 2016 – RBI Governor Raghuram Rajan resigns[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]This is the second high profile resignation in the past six months at the Reserve Bank of India (RBI) and the third under Modi government (including the previous term). The first to go was RBI governor Raghuram Rajan. In December 2018, governor Urjit Patel resigned nearly nine months before the end of his schedule term over differences with the government. The RBI is now left with three deputy governors NS Vishwanathan, BP Kanungo and MK Jain.

Acharya, in a speech just a couple of months before Patel’s resignation over differences with Modi government, had warned of “risks of undermining the central bank’s independence” as “potentially catastrophic”.

“Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution,” Acharya had said.

Acharya had also warned of a talent crisis at a central bank if its independence is seen to be compromised. When the governance of the central bank is undermined, it is unlikely to attract or be able to retain the brightest minds that thrive on the ability to debate freely, think independently, and effect changes, attrition of central bank powers results in attrition of its human capital and deterioration of its efficiency and expertise over time, he had said.

An expert in credit risk, Acharya recently differed with Reserve Bank Governor Shaktikanta Das in the monetary policy announced on April 4, according to minutes released by the bank. Das favoured focussing on economic growth with a repo rate cut. Acharya cautioned on another rate cut in the wake of high inflation excluding food and fuel. The six-member Monetary Policy Committee (MPC) decided to reduce the policy repo rate by 25 basis points to 6 per cent in a 4-2 majority decision.

Also Read: Skeletal remains of 108 children found outside Muzaffarpur Hospital

Acharya’s resignation is the latest in the string of high-profile exits of economic policy makers — Raghuram Rajan, Urjit Patel, Arvind Subramanian and now Viral Acharya and, said Financial Times (FT), calls into question the government’s ability to stomach independent advice. “But that is unlikely to unfaze the government, which no doubt has its own agenda,” FT said.[/vc_column_text][/vc_column][/vc_row]

India News

Delhi-NCR sees second spell of rain and thunderstorms in four days

Delhi-NCR experienced another spell of rain and thunderstorms on March 18, with IMD forecasting more showers over the next few days.

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Delhi and parts of the National Capital Region witnessed another spell of rain, thunderstorms, and strong winds on Wednesday evening, marking the second such weather event in the past four days.

The sudden change brought relief from unusually high temperatures recorded earlier this month. According to officials, the temperature at Safdarjung — the city’s base weather station — was recorded at 24 degrees Celsius at 7 pm.

The India Meteorological Department had earlier issued an alert predicting light to moderate rainfall accompanied by thunderstorms and lightning on March 18. Several areas across the capital experienced gusty winds along with brief but intense showers.

More rain likely over next two days

The weather department has forecast partly cloudy skies for March 19 and 20, with chances of light rain or thundershowers occurring once or twice during the day. On March 21, skies are expected to remain cloudy with the possibility of light showers continuing.

Conditions are likely to stabilise from March 23 onwards, with forecasts indicating a return to partly cloudy to clear skies across the region.

Weather activity across India to intensify

The IMD has also indicated widespread weather activity across multiple regions of the country in the coming days. Rainfall is expected to intensify in several states, accompanied by thunderstorms, lightning, and gusty winds.

In the northeastern region, heavy rainfall is likely over Arunachal Pradesh, Assam, and Meghalaya during the early part of the week.

Meanwhile, the western Himalayan region is also set to witness a shift in weather patterns. Himachal Pradesh is likely to receive heavy rainfall on March 19 and 20, while Uttarakhand and Jammu and Kashmir may experience heavy showers around March 20.

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Centre pushes states to cut levies to boost PNG adoption

The Centre has asked states to reduce local levies and streamline approvals to accelerate PNG adoption and city gas infrastructure growth.

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LPG Cylinder

The Ministry of Petroleum and Natural Gas has urged states and Union Territories to ease local levies and procedural barriers affecting City Gas Distribution (CGD) projects, in a bid to accelerate the adoption of piped natural gas (PNG) as a cleaner fuel alternative.

In a communication sent to Chief Secretaries, Petroleum and Natural Gas Secretary Neeraj Mittal highlighted that high right-of-way charges, road cutting fees, lease rentals and other local levies imposed by urban bodies are discouraging investments in CGD infrastructure.

High costs slowing expansion

The ministry pointed out that the CGD sector, particularly PNG supply to households and commercial establishments, does not receive direct subsidies. As a result, it depends heavily on viable returns, which are being impacted by excessive and inconsistent local charges across states.

It noted that these financial and procedural hurdles are slowing down infrastructure expansion and affecting the broader adoption of natural gas.

Gap between connections and usage

According to the government, while around 12.63 crore PNG connections have been recorded, only about 1.6 crore are currently active. The ministry stressed that improving ease of doing business at state and local levels could help bridge this gap and expand the consumer base.

Officials believe that rationalising levies may initially reduce local revenues but could lead to higher long-term gains through increased gas consumption and economic activity.

LPG shortage adds urgency

The push for PNG adoption comes amid supply constraints in liquefied petroleum gas (LPG), linked to ongoing tensions in the Middle East. Oil marketing companies are currently supplying only 20 per cent of normal commercial LPG demand to states.

To address this, the ministry has proposed increasing LPG allocation to 30 per cent for states that implement reforms supporting PNG and CGD expansion.

Reform-linked incentives for states

The Centre has suggested a set of measures that states can adopt to qualify for higher LPG allocations. These include:

  • Setting up empowered state and district-level committees for faster approvals
  • Introducing single-window clearance with deemed approvals within 24 hours
  • Implementing a dig-and-restore model using bank guarantees instead of restoration charges
  • Eliminating annual rental or lease charges for CGD infrastructure

The ministry said compliance with these reforms would be verified before granting additional LPG allocations.

Industry support measures

The communication also noted that GAIL and its subsidiaries have already allocated full gas supply to the commercial PNG segment to support businesses affected by reduced LPG availability.

The government reiterated that expanding natural gas usage aligns with its broader push for cleaner and domestically sourced energy.

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BJP seals Assam seat-sharing pact, Modi to hold 3 rallies in April

BJP has finalised its Assam seat-sharing plan with allies and is gearing up for an intense campaign led by PM Modi and Amit Shah.

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pm modi

The Bharatiya Janata Party has finalised its seat-sharing arrangement for the upcoming Assam Assembly elections, firming up its strategy alongside National Democratic Alliance partners as campaigning gathers pace in the state.

Under the agreement, the BJP will contest 89 seats, while its allies — Asom Gana Parishad and Bodoland People’s Front — will field candidates in 26 and 11 constituencies respectively. The distribution has been decided after internal deliberations, with the focus now shifting to candidate announcements and campaign execution.

Campaign push led by top leadership

Prime Minister Narendra Modi is expected to address three rallies in Assam during the final leg of the campaign. Tentative dates for the rallies are April 1, April 3 and April 6, with events likely to be held in key constituencies.

Union Home Minister Amit Shah is also set to spearhead an extensive campaign across the state through March, aiming to energise party workers and strengthen voter outreach.

Candidate selection underway

The party’s Central Election Committee is currently meeting to finalise candidates. Sources indicate that approvals for most constituencies are expected soon, and the BJP may release its complete list of candidates within the next two days.

Ticket distribution remains a crucial exercise, with internal discussions highlighting its potential impact on local political dynamics. Party leaders have also touched upon the proposed delimitation exercise scheduled for 2027, which is expected to have long-term implications for Assam’s electoral landscape.

Polling and counting dates

Voting for all 126 Assembly seats in Assam is scheduled for April 9, while the votes will be counted on May 4.

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