What would be the impact if Governor Patel quit?

Indian media has been awash with reports this week that RBI Governor Urjit Patel could quit his post at the Bank’s board meeting on Monday. We think this is unlikely but if he were to resign, local markets would come under pressure. The extent of the fallout would also depend on who replaced him – in particular the appointment of a finance ministry official would raise further concerns over the RBI’s independence.