135th Day Of Lockdown

Maharashtra46826530552116476 Tamil Nadu2734602148154461 Andhra Pradesh1864611043541681 Karnataka151449746792804 Delhi1402321261164044 Uttar Pradesh104388605581857 West Bengal83800589621846 Telangana7095850814576 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
Business Other News 23 Jul 2019 Outspoken Dy Governo ...

Outspoken Dy Governor Viral Acharya ends his RBI stint

PTI
Published Jul 23, 2019, 8:01 pm IST
Updated Jul 23, 2019, 8:01 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.

...




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT