RBI guv's resignation severe blow to economy: Manmohan

Building institutions take a long time and effort but they can be destroyed in a whimper, former Prime Minister Manmohan Singh said on Monday reacting to the resignation of RBI Governor Urjit Patel.

Singh said Patel's resignation was very unfortunate and a "severe blow to the nation's economy which is faced with many headwinds.

"There have been apprehensions expressed earlier by the deputy governor of the RBI about the government’s intent to raid the capital reserves of the RBI for fiscal purposes. I hope the resignation of the governor is not a sign that this may soon become a reality," Singh said in a statement here.

The former prime minister described Patel as a "longtime friend" and that he received the news of his resignation with "great sadness".

"I have known Dr.Patel to be an economist of high repute and also someone who cared deeply about India’s financial institutions and economic policy," said Singh, who also served as RBI Governor.

"Building institutions take a long time and effort but they can be destroyed in a whimper. It is institutions such as the RBI, among many others that have served as the edifice of our great nation’s progress since independence. It will be foolhardy to diminish these institutions for short-term political gains," Singh said.

"I also sincerely hope that this sudden resignation of the governor is not a harbinger of the Modi government’s attempts to destroy the institutional foundations of India’s $3 trillion economy," the former prime minister said wishing Patel success in his future endeavours.