Urjit's resignation 'severe blow to economy': Manmohan Singh

According to The Indian Express, in a statement released on Monday evening, Singh said: "Dr.Patel’s sudden resignation, at a time when the Indian economy is faced with many headwinds is very unfortunate and is a severe blow to the nation’s economy."

"There have been apprehensions expressed earlier by the Deputy Governor of the RBI about the government’s intent to raid the capital reserves of the RBI for fiscal purposes. I hope the resignation of the Governor is not a sign that this may soon become a reality," the 86-year-old said.

Stating that building institutions take a long time and effort but they can be destroyed in a whimper, Singh said: "It is institutions such as the RBI, among many others that have served as the edifice of our great nation’s progress since independence. It will be foolhardy to diminish these institutions for short-term political gains."

Wishing Patel success in his future endeavours, the former Prime Minister said: "I also sincerely hope that this sudden resignation of the Governor is not a harbinger of the Modi government’s attempts to destroy the institutional foundations of India’s $3 trillion economy."

Urjit Patel quit from his position as RBI governor on Monday. The Opposition leaders blamed the Union government for it. Patel has cited 'personal reasons' as the reason behind his decision.

"On account of personal reasons, I have decided to step down from my current position effective immediately," Patel said in a statement.

"It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years," he said.

"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," he added.

Patel resigned from his position just days after the RBI board meeting was held.

The meeting was held amid reports of a rift with the central government.

Reports had emerged that the government had proposed a few changes with which the Centre would be able to strictly supervise the RBI.