Urjit Patel’s resignation ‘severe blow to nation’s economy’: Manmohan Singh

New Delhi, Dec 10: Former Prime Minister Manmohan Singh on Monday termed the resignation of Reserve Bank of India (RBI) Governor Urjit Patel as a "severe blow to the nation's economy".

Singh hoped that fears about the Centre's intention to "raid the capital reserves for fiscal purposes" do not turn into a reality. Patel today stepped down from his post citing personal reasons.

The veteran Congress leader expressed sadness over the development which came "at a time when the Indian economy 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, who served as finance minister from 1991-1996 said.

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.

Taking a jibe at the Narendra Modi government, "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."