Reserve Bank of India (RBI) Deputy Governor Viral Acharya has resigned six months before the scheduled end of his term "due to unavoidable personal circumstances," said the central bank on Monday.
"A few weeks ago, Dr Acharya submitted a letter to the RBI informing that due to unavoidable personal circumstances, he is unable to continue his term as a Deputy Governor of the RBI beyond July 23," said an official statement.
Acharya took up his post on January 20, 2017 for a term of three years. The tenure of the central bank's youngest Deputy Governor post-economic liberalisation was to end on January 20 next year.
"Consequential action arising from his letter is under consideration of the competent authority," added the RBI.
Reports said Acharya will return to the New York University as CV Starr Professor of Economics.
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Acharya follows former RBI Governors Raghuram Rajan and Urjit Patel, both of who left the central bank after advocating strong measures to clean up the banking system, introduce new ideas such as inflation targeting and fought for the central bank's independence.
If the government does not respect RBI's autonomy, Acharya maintained on several occasions, it will incur the wrath of financial markets.
Acharya's resignation comes in the backdrop of economic growth slowing to 5.8 per cent in the fourth quarter of 2018-19. It also comes ahead of the Union Budget 2019-20 in the Parliament on July 5.
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