New Delhi, October 31: Amid reports of Reserve Bank of India (RBI) governor Urjit Patel's resignation, All India Majlis-e-Ittehadul Muslimeen (AIMIM) chief Asaduddin Owaisi on Tuesday hit out at the Modi government over its rift with the central bank. Asaduddin Owaisi accused the Modi government of destroying independent institutions of the country.

"If RBI governor steps down, then certainly it's the consistent policy of the Modi government to pull down independent organisations in their four years of rule. If he resigns, it'll be interference in the autonomy of RBI," Owaisi told news agency ANI. Like they destroyed CBI's autonomy, now it’s RBI’s turn," the Hyderabad MP added. RBI Governor Urjit Patel Seeks More Powers to Effectively Regulate PSBs.

According to a report, Urjit Patel may resign from his post after Union Finance Minister Arun Jaitley held the central bank responsible for the mountain of bad loans in the nation's banking system. "RBI governor may even consider resigning. All options on the table," the report said. Quoting sources, the report said there is "irreversible breakdown between RBI governor and the government".

The rift between Patel and the government widened at the Financial Stability and Development Council (FSDC) meeting chaired by Jaitley. The FSDC meeting was the first instance when Patel came face to face with Jaitley following the recent criticism by RBI Deputy Governor Viral Acharya of government interference in the functioning of the central bank.

Acharya had on October 26 pitched for autonomy in the banking regulator's functioning, warning that the market could make the government pay for eroding the central bank's independence.

(The above story first appeared on LatestLY on Oct 31, 2018 03:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).