The government wants to ease some controls to help the government to achieve short terms goals of economic growth. But RBI is not ready to accept that in the long-term interests of the country. Anyhow the RBI board meeting is on the 14th of this month. We have to wait for the outcome of the meeting.
The former governor of RBI Raghuram Rajan termed this resignation as a "matter of great concern". The NPA of the banks are on the rise and that's why the RBI issued circular to few banks to restrict their lending. The tussle was there related to liquidity, cash flow and few other things and according to reports of the previous meeting between the government and RBI, there was a speculation that the governor might resign at that time. He didn't do so and after that, there may be some more development between them which prompted Mr. Patel to resign today.
There were questions raised about the central government's interference in the functioning of RBI and today's resignation has special significance because tomorrow the assembly election results of the 5 states are going to be declared. There are so many ifs and buts going on in the political circle and it seems everybody is making a calculated move.
"Life is easier when you enjoy what you do"
Probably this incident may change the opinion of the unbiased, educated youth and middle class, who were holding a favourable bias to the Modi government all these days. This will make them think differently and may shake their confidence in the BJP led Modi government.
What is to be seen now is how the results of recent elections to the states will be! If they are not good for the BJP, then great trouble for the BJP /NDA in te coming general elections.
It has to work in great cohesion with the Govt under which it is instituted. There may be a difference of opinion between the Ministry and RBI but that is to be resolved by concrete discussions and convincing data presentations by the RBI. If RBI has apprehensions about a policy of Govt which may adversely affect the industry, business and economic situations in the country, they should boldly tell it to Govt in written instead of talking about it in the galleries of their office.
Resigning from one's post is not a solution. Media will unnecessarily highlight it to increase their channel TRP.
The economic reform tasks which are of national importance can not not be done in seclusion. For these to become successful, there is required a close laison between the Govt and RBI. Personal ego and individual opinions at Ministry level or in RBI will be a deterrent for the overall progress of the country.
Knowledge is power.
'Any fool can know. The point is to understand."- Albert Einstein