Wednesday, Jun 03, 2020 | Last Update : 03:51 AM IST

70th Day Of Lockdown

Maharashtra72300313332465 Tamil Nadu2458613706200 Delhi221329243556 Gujarat17632118941092 Rajasthan92716267201 Uttar Pradesh83615030222 Madhya Pradesh82835003358 West Bengal61682410364 Bihar3945174123 Andhra Pradesh3791241464 Karnataka3408132852 Telangana2891152692 Jammu and Kashmir260194631 Haryana2356105521 Punjab2301200044 Odisha210412459 Assam14862854 Kerala132760811 Uttarakhand9592225 Jharkhand6612965 Chhatisgarh5481211 Tripura4231730 Himachal Pradesh3401186 Chandigarh2972144 Manipur83110 Puducherry79250 Goa73500 Nagaland4300 Meghalaya28121 Arunachal Pradesh2010 Mizoram110 Sikkim100

Outspoken Dy Governor Viral Acharya ends his RBI stint

PTI
Published : Jul 23, 2019, 8:03 pm IST
Updated : Jul 23, 2019, 8:03 pm IST

Acharya will be most remembered for speaking his mind on protecting the autonomy of the RBI.

Forty-five-year old Viral Acharya will be going back to teach at New York University's Stern School of Business. (Photo: File)
 Forty-five-year old Viral Acharya will be going back to teach at New York University's Stern School of Business. (Photo: File)

Mumbai: Viral Acharya ended his stint as the Deputy Governor of the Reserve Bank of India (RBI) on Tuesday, after last month's surprise resignation where the outspoken academic chose to cut short his time in office.

Forty-five-year old Acharya will be going back to teach at New York University's Stern School of Business.

Acharya was one of the youngest deputy governors in the Central bank's history and was in charge of the critical monetary policy department which also made him a part of the rate-setting panel.

A Mumbai boy who was born and grew up in the financial capital, Acharya will be most remembered for speaking his mind on protecting the autonomy of the RBI.

His October 2018 speech, warning of the wrath of markets if the Government tramples on it, amid concerns including reports of Government eyeing the RBI's excess reserves, was the rare occasion when a top official chose to go public with the RBI's concerns.

"Governments that do not respect Central banks independence will sooner or later incur the wrath of financial markets, ignite economic fires, and come to rue the day they undermined an important regulatory institution; their wiser counterparts who invest in Central bank independence will enjoy lower costs of borrowing, the love of international investors, and longer life spans," he had said.

His then-boss, Governor Urjit Patel resigned on December 10, triggering speculation about Acharya following the suit, which was denied.

His work non-performing assets (NPA) problem wherein his work focused on getting the banks out of the legacy issues which is an ongoing work and a steadfast focus on inflation that earned him the sobriquet of being a policy hawk.

Some experts, however, also question the department under him getting inflation projections wrong, which may have had delayed the growth-propping rate cuts.

Acharya often resorted to poetry and the creative arts including Bollywood songs, to explain his state of mind on various subjects.

The most memorable would definitely be finding refuge in Ernest Hemingway's melancholic lines before going with the majority view of cutting the rates for the third time in the last meeting of the monetary policy committee he attended.

Quoting Santiago the old fisherman in the novel, Acharya expressed his melancholy in voting with the majority: "It is better to be lucky. But I would rather be exact. Then when luck comes, you are ready."

Quoting Bollywood numbers in speeches was another favourite for Acharya, a passionate singer himself. In his last published speech, he praised S D Burman's minimalistic approach to music in the film "Pyaasa" to drive home the concern around excess government borrowing crowding out the private sector.

Tags: viral acharya, urjit patel, non-performing assets, npa, reserve bank of india, rbi
Location: India, Maharashtra, Mumbai (Bombay)
ADVERTISEMENT
ADVERTISEMENT