RBI Deputy Governor Viral Acharya resigns six months before his term ends

RBI Deputy Governor Viral Acharya has resigned from his post, six months before the end of his term stating that he was not expecting his term to be renewed in any case.

Viral Acharya joined the central bank in January 2017 and was RBI’s youngest deputy governor after economic liberalisation. He will be returning to New York University as CV Starr Professor of Economics.

According to minutes released by the bank, Acharya recently had a difference of opinion with Reserve Bank Governor Shaktikanta Das in the monetary policy announced on April 4. RBI Governor had argued in favour of focussing on economic growth with a repo rate cut, whereas Deputy Governor cautioned on another rate cut in the wake of high inflation. The Policy Committee (MPC) decided to reduce the policy repo rate by 25 basis points to 6 per cent in a 4-2 majority decision.

Viral Acharya had completed his BTech in Computer Science and Engineering from IIT Mumbai in 1995 and PhD in finance from NYU–Stern in 2001. Before joining Stern, he was at London Business School (2001–2008), the Academic Director of the Coller Institute of Private Equity at LBS (2007–09) and a Senior Houblon–Normal Research Fellow at the Bank of England (Summer 2008). Acharya who joined New York University Stern School of Business in September 2008 is now CV Starr Professor of Economics.

Viral Acharya has co-authored research papers with former RBI Governor Raghuram Rajan and has called him a source of inspiration.