Viral Acharya who resigned as RBI Deputy Governor is set to return to New York University Stern School of Business (NYU Stern) to teach, reported the Economic Times.
Earlier, he had planned to return to teaching in February 2020. But, Acharya will be now returning to the New York University's Stern School of Business in August itself.Acharya did PhD in Finance from New York University Stern School of Business in 2001. He also holds B Tech degree in Computer Science and Engineering, from Indian Institute of Technology(IIT). The Reserve Bank of India Deputy Governor, Mr. Viral Acharya, has quit six months before the end of his term.
He is the second top RBI official to resign quit after the Governor, Dr. Urijit Patel, left in last December. Sources said that Mr. Acharya, who joined as the RBI Deputy Governor in January 2017, was against the central bank's decision on repeated cuts of repo rates to support the government's public spending and consumption boost measures to tackle the slowing growth.
Mr. Acharya viewed such steps as putting fiscal discipline into risk and he did not want to be part of 'those decisions', sources said. The RBI, however, has not responded to queries on this regard, neither has Mr. Acharya made any statement.
To spur the economy, the RBI had cut repo rate by 25 bps to 5.75 per cent in June while switching to the 'accommodative' stance, implying amenable to further cuts.This is the third time on the trot that the six-member Monetary Policy Committee has decided on a 25-basis points rate cut, making it a hat-trick of repo rate cuts.
The rate cut also comes against the backdrop of benign retail inflation. Following the MPC decision, the repo rate now stands at 5.75 per cent against 6 per cent earlier.As an impact, the market was at 39,120, down 72.10 points as of 10.17 a.m. on Monday.With Mr.Acharya's resignation, the RBI is now left with three Deputy Governors, Mr. NS Vishwanathan, M. BP Kanungo and Mr. MK Jain.