New Delhi: Urjit Patel’s abrupt resignation as governor of the Reserve Bank of India has sent shock-waves throughout India’s financial and economic establishment.While Patel’s exit comes on the heels of months of tension between the central bank and the Narendra Modi government, the prevailing sentiment, across the spectrum, appears to be one of surprise.This, banking sources say, is because most people thought the last RBI board meeting had ended in a tentative truce between both parties.As the Modi government gears up to appoint an interim replacement and possibly form a search committee to look for a more permanent option, The Wire brings you reactions to Patel’s exit from across industries and the political spectrum.Raghuram Rajan, Former RBI governorFile photo of outgoing RBI governor Raghuram Rajan. Credit: PTI“I think Dr Patel has made a statement. I think this is the ultimate statement a regulator or a civil servant can make. I think his statement should be respected.We should go into the details on why there was an impasse which forced him to take this ultimate decision and I think this is something all Indians should be concerned about because the strength of our institution is really important.”C Rangarajan, Former RBI governorI was under the impression that in the last meeting many of the contentious issues were resolved even though there were some that were left out. I do not know what happened in between.Sachin Chaturvedi, RBI Board Member Urjit Patel should not have resigned at a time when most of the controversial issues have been discussed and decided … we look forward to meeting on Dec. 14 to discuss the pending issues. Meeting could be chaired by RBI senior most deputy governor.”Kaushik Basu, Former Chief Economic AdviserUrjit Patel is a first-rate economist. For that reason his departure is sad for India and was inevitable.Manmohan Singh, Former Prime MinisterDr Patel’s sudden resignation, at a time when the Indian economy is faced with many headwinds is very unfortunate and is a severe blow to the nation’s economy. 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.Manmohan Singh. Credit: PTIBuilding 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.I wish Dr. Urjit Patel success in his future endeavours. 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.Ashwani Mahajan, Co-Convenor of Swadeshi Jagran Manch, a RSS-trade affiliate organisation. “I think it was unexpected, this is something not on expected lines. Our country runs on a system and it is not individual-centric. Board of RBI comprises educated and learned people, there are economists on the board. They all are also opinionated. The board is not just a rubber stamp.”Lakshmi Iyer, Chief Investment Officer, Fixed Income, Kotak Mahindra AMC“Markets were not prepared for this. Tomorrow is also the political uncertainty day. So, if that saves then you’ll see some saving grace. Otherwise, I don’t think markets may take this very kindly, especially dollar-rupee.”“I was not expecting this. From a markets standpoint, it might rebound, that’s a different thing, but for a knee-jerk reaction, I think it’ll be negative for dollar-rupee and, therefore, logically for bonds also. We’ll have to wait and watch.”Garima Kapoor, Vice-President, Elara Capital “This is a huge credit negative for India – it’s an image issue for the country, and FIIs are not going to take it very positively.”“Foreign investors are likely to take this extremely negatively because this affects the credibility of the central bank, which is highly important for the stability of the economy.”