The Government acknowledges with deep sense of appreciation the services rendered by Dr. Urjit Patel to this countr… https://t.co/QAHg8Oz7Z2 — Arun Jaitley (@arunjaitley) 1544444364000

Citing personal reasons, Urjit Patel has resigned as the Reserve Bank of India governor. His resignation comes against the backdrop of increasing tensions between the Finance ministry and the Reserve Bank of India. Urjit Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since the year 1992.He was hand-picked by the BJP-led government after his predecessor Raghuram Rajan was denied a second-term.In recent months, the government and the RBI have been at loggerheads over whether the RBI has been too hawkish in its stance towards lenders and the economy given a drop in the inflation rate and signs of slower growth, as well as in the face of defaults by a major lender.There has been speculation of his resignation after deputy governor Viral Acharya's speech last month that sought to defend the autonomy of the RBI and the subsequent differences between the government and the RBI over various issues related to liquidity, credit flow and the controls governing weak banks.Terming the resignation of RBI governor Urjit Patel as a mark of protest, former RBI chief Raghuram Rajan, in an interview to ET Now has said that the government needs to understand what prompted the resignation of Urjit Patel.The next RBI board meeting was scheduled for December 14. Patel has resigned just days before that. In a tweet, Finance Minister Arun Jaitley acknowledged Urjit Patel's contribution."On account of personal reasons, I have decided to step down from my current position effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years. 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," Patel said in a statement.