Crisis at Mint Road

Govt must move quickly to restore confidence in RBI autonomy

Urjit Patel’s resignation as governor of the Reserve Bank of India (RBI), the first such resignation in the post-liberalisation period, is a moment of crisis for institutional autonomy in India. It is essential that the government moves swiftly to restore confidence in the central bank’s autonomy, which may have been dented by Monday’s events, which took everyone by surprise. An independent RBI is a crucial pillar of India’s institutional strength and one that makes it attractive to global capital. The achievements of the past few years have included a general acceptance that the RBI is committed to low and stable