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(Photo source: IANS) <ul><li>The Governor of the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI), <keyword id="6375119" type="DEFINITION" weightage="20" keywordseo="urjit-patel">Urjit Patel</keyword>, just resigned from his post citing ‘personal reasons’.</li><li>This comes at a time when <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>'s central bank and its government have been at odds about how much autonomy the RBI should have.</li><li>This is a surprise turn of events, even for those who expected his resignation, as it has come much earlier than speculated. </li></ul>In a surprise move, the governor of the Reserve Bank of India, Urjit Patel, has stepped down from his role citing ‘personal reasons.’ His resignation has been speculated in the past few months in the wake of a much-publicised discord between the Indian government and the central bank. Here’s the full statement by Patel: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="ExtQuote" text="“On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years. The support and hard work of RBI staff, officers and management has been the proximate driver of the Bank’s considerable accomplishments in recent years. I take this opportunity to express gratitude to my colleagues and Directors of the RBI Central Board, and wish them all the best for the future.”" auname="Urjit R. Patel, 10th December 2018"></div>







































 The rift between the government and India’s central banking institution has been widening over the issue of how much autonomy the bank should have. The Indian government wanted to loosen the restrictions that RBI had placed on banks in the wake of their rising non-performing assets (NPAs) as well as gain access to the RBI’s surplus reserves. Urjit Patel was appointed as the governor of the RBI on 4 September 2016 after Raghuram Rajan resigned from his post on 19 June earlier that same year. Under his tenure, the Indian economy underwent the exercise of demonetisation where 85 percent of the country’s currency was pulled from circulation. Under normal circumstances, Urjit Patel’s term would have lasted till September 2019, but with this announcement, his resignation is effective immediately. 
 
 
 
 
 
 
 
 
 
 
 
 
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 See also: <a href="https://www.businessinsider.in/twitter-erupts-with-reactions-on-urjit-patels-resignation-from-the-reserve-bank-of-india/articleshow/67028029.cms">Twitter erupts with reactions on Urjit Patel’s resignation from the Reserve Bank of India</a> <a href="https://www.businessinsider.in/question-of-autonomy-as-the-indian-government-tries-to-strong-arm-the-countrys-central-bank-its-governor-threatens-to-resign/articleshow/66446649.cms">Question of autonomy — As the Indian government tries to strong arm the country’s central bank, its governor threatens to resign</a> <a href="https://www.businessinsider.in/after-weeks-of-tension-the-reserve-bank-of-india-gives-in-to-some-of-the-central-governments-demands-while-retaining-its-independence/articleshow/66705908.cms">After weeks of tension, the Reserve Bank of India gives in to some of the central government's demands while retaining its independence</a>

Reserve Bank of India governor Urjit Patel resigns citing ‘personal reasons’

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C04WN5XZ3KPL&amp;SMLS=1&amp;RW=1357&amp;RH=885">Shailesh Andrade/Reuters</a>Minister of Finance Arun Jaitley (L) and outgoing Reserve Bank of India Governor Raghuram Rajan (R)</div></div></div>Raghuram Rajan, the governor of the Indian central bank, <a href="http://www.businessinsider.com/r-indian-central-bank-chief-felt-undermined-in-weeks-before-quitting-sources-2016-6">announced last weekend</a> that he will be stepping down in September at the end of his first term - an abrupt decision that took the Indian government by surprise.The announcement also unsettled investors and the market, and <a href="http://www.businessinsider.com/fx-markets-june-20-2016-6">the rupee tumbled</a> following the news. Now comes the speculation about who will be the next Reserve Bank of India (RBI) governor - and what the potential risks and implications of each are. The Times of India reports that the government has already <a href="http://timesofindia.indiatimes.com/business/india-business/Government-shortlists-4-candidates-to-succeed-Raghuram-Rajan-as-RBI-governor/articleshow/52935959.cms?">narrowed the list of candidates</a> down to four - a current deputy governor of the RBI, two former deputy governors, and the chair of the State Bank of India. The current deputy governor, Urjit Patel, represents the smoothest transition and is the least risky choice, according to a new report from Capital Economics. In general, an appointee with experience at the RBI would provide the most continuity, and Patel's history would be regarded the most positively by the markets.Arundhati Bhattacharya, on the other hand, is the chair of the State Bank of India - the only candidate currently working in the banking sector as well as the only female candidate. Her appointment would involve more uncertainty about how closely aligned the bank would be with Rajan's current monetary policy views, which could be risky for financial markets.The biggest threat to India's markets, according to the Capital Economics report, is the autonomy of the RBI, as there have been concerns over the past 18 months that the government is attempting to rein in the RBI's independence. High-ranking officials have criticized Rajan for keeping interest rates too high and have called for rate cuts. If the new governor were to cut rates suddenly, or compromise the RBI's independence from the finance ministry, markets could react badly.The fact that the list of candidates is made up of economists, as opposed to government officials, sends a reassuring message to the markets. <a href="http://economictimes.indiatimes.com/news/economy/policy/government-likely-to-appoint-an-economist-to-succeed-raghuram-rajan-as-rbi-governor/articleshow/52930512.cms">The Economic Times wrote that</a> "The government feels appointing an economist will send a strong signal to the international community and address concerns over the RBI's monetary policy independence." The successor is expected to be announced in the next month, putting an end to the speculation and hopefully restoring the market. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-plucking-nose-hairs-can-cause-lethal-infections-2016-6">There's a 'danger triangle' on your face that could kill you if you're not careful</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="5hbDg1NDE6VPzJFT9U12Yu26BsdIvnPg" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

The Indian government has to find someone soon to replace the head of the central bank

Prime Minister Narendra Modi, on Wednesday, congratulated Reserve Bank of India's (RBI) Governor, Shaktikanta Das for bagging an A+ grade rating in the Global Finance Central Banker Report Cards 2024. Prime Minister in a post on social media "X" said, "Congratulations to RBI Governor Shri @DasShaktikanta for this feat, and that too for the second time. This is a recognition of his leadership at the RBI and his work towards ensuring <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword> and stability." <keyword id="20850250" type="General" weightage="20" keywordseo="RBI-Governor-Das" source="keywords">RBI Governor Das</keyword> has been awarded the A+ grade rating for the second consecutive year. The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of nearly 100 key countries, territories, and districts, as well as the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States and the Central Bank of West African States. Grades are based on an "A+" to "F" scale for success in areas such as <keyword id="21364628" type="General" weightage="20" keywordseo="inflation-control" source="keywords">inflation control</keyword>, economic growth goals, currency stability and <keyword id="22859834" type="General" weightage="20" keywordseo="interest-rate-management" source="keywords">interest rate management</keyword>. "A" represents an excellent performance, down through "F" for outright failure. "Central bankers have waged war against <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword> over the past few years, wielding their primary weapon: higher interest rates. Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly," said Global Finance founder and editorial director Joseph Giarraputo. The RBI has been successful in controlling the larger macroeconomic situations in the country. The apex bank is actively working to push economic growth through its <keyword id="20900764" type="General" weightage="20" keywordseo="monetary-policies" source="keywords">monetary policies</keyword>. The RBI recently kept the the <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword> unchanged at 6.5 per cent after the deliberations of the Monetary Policy Commitee meeting earlier this month. The move reflects the central bank's cautious approach amid ongoing economic uncertainties. Announcing the monetary policy decisions, Das had said that the decision to keep the repo rate steady comes amidst persistent concerns about inflation, which remains above the RBI's target range. RBI Governor Das said that the inflation will moderate from July onwards as the monsoon has improved and global food prices have shown signs of easing in July. The Q1 <keyword id="19999655" type="General" weightage="20" keywordseo="Consumer-Price-Index" source="keywords">Consumer Price Index</keyword> (CPI) inflation for the current financial year (2024-25) is projected at 4.5 per cent. CPI inflation for the first quarter of the next financial year (Q1 2025-26) is projected at 4.4 per cent, as announced by the RBI Governor. India's retail inflation, after breaching 5 per cent in June, softened drastically in July. In line with the moderation in retail inflation, wholesale inflation in India too witnessed a sharp decline in July. The annual rate of inflation based on all India Wholesale Price Index (WPI) numbers is 2.04 per cent (provisional) for July 2024 (over July 2023).

PM Modi congratulates RBI Governor Das on A+ rating in Global Finance Report

Mumbai, Jan 29 () The Reserve Bank of India (RBI) on Wednesday appointed its Executive Director Janak Raj as member of the Monetary Policy Committee (MPC), the highest interest rate setting body.
 Raj replaces M D Patra, who was recently elevated as Deputy Governor of the RBI.
 The decision to appoint Janak Raj was taken at the 581st meeting of the central board here on Wednesday.
 "The Board nominated Dr Janak Raj, Executive Director on the Monetary Policy Committee as an ex officio member," the RBI said in a statement.
 The government had in 2016 constituted MPC to set the benchmark interest rate.
 The MPC is headed by the RBI Governor. Of the six members, three are nominated by the government, while the remaining three are from the RBI (including the Governor).
 The Monetary Policy Committee takes decisions based on majority vote. Each member has one vote but the RBI Governor get a casting vote in case of a tie. DP ABM

RBI appoints ED Janak Raj as member of MPC

<ul><li>The governor to <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>’s central bank resigned on 10 December 2018 citing ‘personal reasons’.</li><li>There were reports that the RBI and the Indian government had reached a consensus or a ‘truce’ between their objectives. </li><li>While politicians and academicians in the country have different views on ‘why’ <keyword id="6375119" type="DEFINITION" weightage="20" keywordseo="urjit-patel">Urjit Patel</keyword> took such a drastic step, we can track a course of events leading up to this development.</li></ul> Urjit Patel resigned from his position as the governor of the Reserve Bank of India, the country’s central bank on Monday, leaving in its wake several questions about its timing and the potential impact of the decision on the country's economy. 
	<div type="twitter" handle="PChidambaram_IN" handlename="P. Chidambaram" image="http://pbs.twimg.com/profile_images/603422412785328128/9Y6OuwJM_normal.jpg" favoritecount="5297" retweetcount="1489" status="Saddened, not surprised, by Dr Urjit Patel's resignation. No self respecting scholar or academic can work in this government." createdat="1544446634000" id="1072113008996839424"></div>



 Patel cited ‘personal reasons’ behind the resignation but considering the recent animosity between the central bank and the Indian government, it’s not unreasonable to assume that the governor of the RBI and the ruling party had serious differences on the functioning of the RBI. In the days leading up to his resignation, while nothing was said explicitly, there was open speculation that Patel may walk since the RBI and the Bharatiya Janata Party (BJP) did not see eye-to-eye on issues of non-performing assets, credit-flow to small and medium enterprises, as well as the central bank's autonomy and the demand from the government that RBI should part with its surplus capital--a controversial move that raised concerns about the government’s intentions given its ongoing struggle to meet its fiscal deficit targets. Here’s everything that led up to Patel resigning from the RBI, India’s central bank.

Urjit Patel’s tough love to stabilise the Indian economy and the eventual face off with the government — here’s how it happened

(Image Credit- IANS) <ul><li><keyword id="6375119" type="DEFINITION" weightage="20" keywordseo="urjit-patel">Urjit Patel</keyword>, the governor of the Reserve Bank of India, has resigned from his post on the central bank’s board. </li><li>Reactions from officials range from ‘I told you so’ to commending the governor’s tenure in office. </li></ul>Twitter exploded with reactions within minutes of Urjit Patel, the governor of the Reserve Bank of India (RBI), announcing his resignation from his post on the board, citing ‘personal reasons’. Urjit Patel had earlier threatened to resign from the RBI with the widening rift between the government and the Reserve Bank of India — especially over the question of the central bank’s autonomy — it was reported that both parties had ultimately reached a ‘truce’. While some had speculated that the governor would resign, nobody had the exact date on their cards and the decision rolled in a little earlier than expected. With the general elections around the corner, reactions from politicians and fellow academicians flew in — ranging from support over Patel’s decision to how the current government is creating a hostile environment that’s not conducive for efficient decision-making. <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>: ‘Urjit Patel leaves a great legacy, under his leadership, the RBI brought financial stability’ 
	
	
	
	
	
	
	
	
	<div type="twitter" handle="narendramodi" handlename="Narendra Modi" image="http://pbs.twimg.com/profile_images/718314968102367232/ypY1GPCQ_normal.jpg" favoritecount="10119" retweetcount="2356" status="Dr Urjit Patel is an economist of a very high calibre with a deep and insightful understanding of macro-economic is… https://t.co/DyZUxKIXPv" createdat="1544444710000" id="1072104938908508161"></div>



















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 <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>: ‘Wish Dr. Patel all the very best’ 
 
 
 
 
 
 
 
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 Congress: ‘Another one bites the dust’ 
 
 
 
 
 
 
 
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 Subramanian Swamy: ‘It is a direct consequence of FM blaming him publicly yesterday for NPAs.’ 
 
 
 
 
 
 
 
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 AAP: ‘Demonetisation was just a move to benefit cronies.’ 
 
 
 
 
 
 
 
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 P. <keyword id="6362104" type="LOCATION" weightage="20" keywordseo="chidambaram">Chidambaram</keyword>: ‘Saddened, not surprised’ 
 
 
 
 
 
 
 
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 See also: <a href="https://www.businessinsider.in/reserve-bank-of-india-governor-urjit-patel-resigns-citing-personal-reasons/articleshow/67026294.cms">Reserve Bank Of India Governor Urjit Patel Resigns Citing ‘Personal Reasons’</a> <a href="https://www.businessinsider.in/question-of-autonomy-as-the-indian-government-tries-to-strong-arm-the-countrys-central-bank-its-governor-threatens-to-resign/articleshow/66446649.cms">Question of autonomy — As the Indian government tries to strong arm the country’s central bank, its governor threatens to resign</a> <a href="https://www.businessinsider.in/after-weeks-of-tension-the-reserve-bank-of-india-gives-in-to-some-of-the-central-governments-demands-while-retaining-its-independence/articleshow/66705908.cms">After weeks of tension, the Reserve Bank of India gives in to some of the central government's demands while retaining its independence</a>

Twitter erupts with reactions on Urjit Patel’s resignation from the Reserve Bank of India

State Bank of India (<keyword id="13222" type="CITY" weightage="60" keywordseo="SBI">SBI</keyword>) Chairperson Arundhati Bhattacharya has said that the Reserve Bank of India (<keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword>) is unlikely to cut interest rate in the next <keyword id="6357126" type="ORGANIZATION" weightage="100" keywordseo="monetary-policy">monetary policy</keyword> review. 
 
“The fact of the matter is that all the parameters are indicating that there will be further fall in inflation. Between November and January with the base effect it might go up a little bit. But by March it will be well below whatever the glide path that is indicated by the RBI. RBI governor has indicated that he will be data driven… may be by the end of the fiscal (cut in the interest rate by RBI),” she said. 
 “Base effects will also temper inflation in the next few months only to reverse towards the end of the year. The Reserve Bank will look through base effects,” RBI Governor <keyword id="6358908" type="PERSON" weightage="60" keywordseo="Raghuram-Rajan">Raghuram Rajan</keyword> had said in his monetary policy announcement on September 30. 
 
The RBI is scheduled to come out with its bi-monthly policy announcement on December 2.

RBI May Not Cut Rate In Next
Policy Review: SBI

Mumbai, Jan 15 () Newly appointed RBI Deputy Governor Michael Debabrata Patra will look after the key monetary policy department along with seven other units, the central bank said after reshuffling portfolios of deputy governors.
Besides the governor, the Reserve Bank of India (RBI) has four deputy governors looking after different departments.
Patra, who was the executive director, took over the post that was lying vacant since June last year when Viral Acharya resigned.
As executive director, he was a member of the Monetary Policy Committee (MPC) of the RBI, which is invested with the responsibility of monetary policy decision making in India. He will continue to be an ex-officio member of the MPC as deputy governor.
As deputy governor, Patra will look after Monetary Policy Department including Forecasting and Modelling Unit (MPD/MU), the central bank said.
He is the second insider after S S Tarapore to become deputy governor in charge of monetary policy. Mostly, the position in the past has been given to external economists. 
His other portfolios include Financial Markets Operations Department, Financial Markets Regulation Department including Market Intelligence, International Department, Department of Economic and Policy Research, Department of Statistics and Information Management, Corporate Strategy and Budget Department and Financial Stability Unit.
The RBI further said Deputy Governor N S Vishwanathan will look after departments of co-ordination, regulation, communication, enforcement department, inspection department, and risk monitoring. He has also been assigned the job of Secretary's Department.
Ten departments including currency management, information technology, and foreign exchange, had been given to B P Kanungo.
Deputy Governor M K Jain will look after departments of supervision, financial inclusion, human resources, among others. 
Patra, a career central banker since 1985, has worked in various positions in Reserve Bank of India. 
A fellow of the Harvard University where he undertook post-doctoral research in the area of financial stability, Patra has a PhD in Economics from the Indian Institute of Technology, Mumbai. NKD CS
MKJ

Newly appointed Dy Guv Patra to look after RBI's monetary policy division

<ul><li>The Reserve Bank of India (RBI) Governor <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword> was doling out optimism to the market at today’s Monetary Policy Committee (<keyword id="6369693" type="UNKNOWN" weightage="20" keywordseo="MPC">MPC</keyword>) briefing. </li><li>The MPC will be expanding the limit of open market operations (OMOs), providing on-tap TLTRO of ₹1 lakh crore, and introducing State Development Loan (SDL) OMOs.</li><li>While these measures may ease some tensions in the short run, the markets still seek predictability and interest rate cuts. </li><li>Das said that both the apex bank and markets can operate in the same space in competition without necessarily being combative. </li></ul>The Reserve Bank of India (RBI) Governor Shaktikanta Das delivered a <a href="https://www.businessinsider.in/policy/economy/news/rbis-mpc-keeps-the-policy-rates-unchanged-to-maintain-accommodative-stance-for-inflation/articleshow/78566955.cms">chipper note</a> on India’s recovery today. According to him, even though there’s some disconnect between the RBI and the markets, all will be well — soon. However, what the market participants want is for the RBI to acknowledge that the economy is in deep trouble and, therefore, cut interest rates further, boost money supply, and ease credit. <div type="Article" hostid="261" msid="78566955" title="RBI says it has decided to 'look through' the current 'high inflation' as it won’t last long⁠ but leaves interest rates unchanged" mstype="2" mssubtype="0"></div> The deep contraction of economic growth witnessed in the first quarter is behind us, he said, while emphasising that some silver linings are already visible. However, not all that glitters is gold. “We remain circumspect about generalising these early greenshoots, as they have benefitted from base effects and one-off shifts in some sectors,” said ratings agency ICRA. Despite Governor Das’ attempt to ease those tense nerves in the market, the argument seems far from over. “The <keyword id="64190" type="POSITION" weightage="20" keywordseo="RBI-Governor">RBI governor</keyword>'s push for optimism is bordering on the edge of hope,” said Sushil Kedia, the founder of KEDIANOMICS. “What's going to happen over the next one month or three is anybody’s guess.” <div type="image" title="India gdp by quarter" msid="78574635" hostid="261" caption="&amp;lt;p&amp;gt;India&amp;#39;s GDP numbers over the last two years and RBI&amp;#39;s expectations for the second half of the fiscal year&amp;lt;/p&amp;gt;"></div> The question to ask here is not who is right and who is wrong, but what happens if any one of them is wrong. If the markets are wrong and the economy recovers by March 2021, they will be in for a surprise. However, if the RBI is wrong and the economy is worse off than the picture painted by the Governor, the implication may be more dire for everyone in the country. Not just growth, RBI hopes the inflation wave will also ebb on its own “MPC has decided to look through the current inflation as a transient hump,” Governor Das explained, adding that inflation will ease between January and March next year. However, Kedia is less sanguine than the RBI Governor. “The interest rate cycle has been so overstretched and soft for so long, that I do see signals in long term data analysis, that at any point far sooner than one would expect, some global events will start reversal of the interest rate cycle,” he said. <div type="image" title="INflation india (1)" msid="78574672" hostid="261" caption="&amp;lt;p&amp;gt;Inflation in India since the outbreak of the coronavirus pandemic in the country&amp;lt;/p&amp;gt;"></div> “The relative economic growth differential between China and the rest of the world is almost 13-14%,” he added. The point Kedia is making is that if inflation rises in the rest of the world, even India will have to raise interest rates to tackle the prices, and the RBI is not preparing for it. While not the most obvious possibility, only time will tell if Kedia’s fear is proven right. RBI’s efforts have been lauded but in parts While the RBI has opened the liquidity taps time and again, a big concern in the market is that both central and state governments need to borrow more and more to meet the rising expenses due to the pandemic. The RBI said that it would buy long-term bonds — issued by both states and the centre — on tap worth ₹20,000 crore, up to ₹1 lakh crore in the coming days. <div type="image" title="india govt debt" msid="78574919" hostid="261" caption="&amp;lt;p&amp;gt;Indian government owes lenders more than &amp;#8377;101 trillion&amp;lt;/p&amp;gt;"></div> That would provide the money states need, but it will also mop up the funds that would have otherwise been available for private borrowers. In these challenging times, it is believed that lenders would rather give money to a government than risky private parties. And that would mean that the borrowing rates for private companies will remain higher than what it should have been. “It also remains to be seen if the commitment to facilitate state and central government borrowing, as well as the explicit signals aimed at softening yields, are adequate for bond markets to shrug off concerns regarding the fiscal health of the central and state governments,” ICRA pointed out. Back to the demand for another rate cut Essentially, private borrowers are back to seeking interest rate cuts, which the RBI seems reluctant to execute at this point. “These (measures announced today) should be beneficial for banks who are comfortable with the credits of corporates to lend as banks' borrowing rates are fixed. In case the repo rates are cut again, banks can refinance at lower rates also,” said Murthy Nagarajan, the head of fixed income at Tata Mutual Fund. <div type="image" title="Copy of TCS share price 2" msid="78575065" hostid="261" caption="&amp;lt;p&amp;gt;Nifty 50 closes above 11,900 points after RBI&amp;#39;s announcement today&amp;lt;/p&amp;gt;"></div> Instead of directly cutting rates, the RBI has offered up open market operations (OMOs), which — according to Abhishek Goenka, the founder and CEO of India Forex Advisors (IFA) — will help bring borrowing rates down in the commercial paper market. OMOs are conducted by the central bank to give or take currency from a bank or group of banks by buying or selling government bonds on the open market. It’s an instrument banks can use to increase or shrink liquidity in the market. “RBI was doing OMOs on an ad hoc basis,” explained Goenka, essentially saying that while RBI may be taking necessary steps, they haven’t been very predictable. And markets hate surprises. <div type="image" title="Copy of nifty50" msid="78575238" hostid="261" caption="&amp;lt;p&amp;gt;India&amp;#39;s 10-year bond yeilds over the last one month&amp;lt;/p&amp;gt;"></div> Until September 30, it wasn’t clear how cash-strapped state governments would find the money to meet the additional expenses in the wake of the pandemic. The markets are glad that RBI has opened up the emergency borrowing window — called ways and means advances or WMA — <a href="https://www.businessinsider.in/policy/economy/news/india-leaves-borrowing-calendar-unchanged-target-remains-at-12-lakh-crore/articleshow/78407506.cms">until the end of the fiscal year by 60%</a>. WMA essentially means that governments can borrow directly from the RBI to meet their emergency needs. That leaves more money in the market for private borrowers. While the decision came just in time, there was enough fear and chaos in the run-up to it. What the markets want are predictability and interest rate cuts. Meanwhile, the Governor has asked the market to keep the faith. “We look forward to cooperative solutions for the borrowing program for the second half of the year… These views can be competitive without being combative,” he said. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/rbis-mpc-keeps-the-policy-rates-unchanged-to-maintain-accommodative-stance-for-inflation/articleshow/78566955.cms">RBI says it has decided to 'look through' the current 'high inflation' as it won’t last long⁠ but leaves interest rates unchanged</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-beats-accenture-to-become-the-worlds-most-valuable-it-services-company/articleshow/78566487.cms">TCS beats Accenture to become the world’s most valuable IT services company — but this not the first time it has raced ahead</a> <a href="https://www.businessinsider.in/india/news/union-minister-ram-vilas-paswan-dies-at-74/articleshow/78558640.cms">India's consumer affairs minister Ram Vilas Paswan passes way at 74</a> <a href="https://www.businessinsider.in/science/space/news/mars-will-appear-bigger-redder-and-brighter-on-october-13-and-wont-get-this-close-to-earth-again-until-2035/articleshow/78556539.cms">Mars will appear bigger, redder, and brighter on October 13 — and won’t get this close to Earth again until 2035</a>

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Reserve Bank of India governor Urjit Patel resigns citing ‘personal reasons’

Prabhjote Gill

The Indian government has to find someone soon to replace the head of the central bank

Chloe Pfeiffer

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