MUMBAI: RBI Deputy Governor Viral Acharya 's resignation on Monday did not surprise many. He opposed rate cut even in the February and April monetary policies this year.Acharya is in the mould of a classical economist for respecting central bank's independence. Among the most prominent and controversial issues between RBI and government where he was involved included the demand that the central bank shell out more dividend, which was strongly opposed by Acharya.In a speech in October 2018, Acharya cited the example of the Argentinian central bank governor, who resigned after the country's government raided the central bank's balance sheet. He was of the view that this was at a level similar to that in 2013 at the time of the "taper tantrum" crisis. Noting that liquidity infusions of the central bank are determined by the needs of the economy and not the price of long term assets, he had snubbed any calls for more bond purchases RBI to check rising yields.

Source: Economic Times June 24, 2019 09:34 UTC