Arun Jaitley says the government never asked RBI governor Urjit Patel to resign 

Arun Jaitley.

Finance minister Arun Jaitley, on Tuesday, said the central government had no role in Reserve Bank of India governor Urjit Patel’s resignation and that the government did not ask him to step down from his post.

According to media reports, Jaitley, at an even said, “The government never asked for his resignation.”

It is widely speculated that Patel resigned after a stand-off with the government after the latter demanded that the RBI released a part of its reserve cash in the tune of Rs 3.6 lakh crore, over a third of the bank’s reserves, for boosting the industrial sector.

Jaitley, however, admitted that the issue of RBI surplus was discussed with the bank. He said, “The issue of RBI reserves was being discussed between the government and the central bank during the RBI’s board meeting.”

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