Former prime minister Manmohan Singh on Monday described Reserve Bank of India (RBI) governor Urjit Patel's resignation as a sad development and said Patel cared deeply about India’s financial institutions and economic policy.

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, Manmohan said.

"I don’t know why he has done it but as a long time friend and admirer of Urjit I feel very sad at this development," Manmohan told CNBC-TV18.

Patel on Monday resigned from his post on account of personal reasons, with immediate effect.

When asked the government should be introspecting at this stage, Manmohan said he wouldn’t like to comment till he has better information.

"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 added.

Building institutions take a long time and effort but they can be destroyed in a whimper, he said, adding that it is institutions such as the RBI, among many others that have served as the edifice of our great nation’s progress since independence.

"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," Manmohan said.

Patel, a Kenya-born economist, was brought to India during the United Progressive Alliance (UPA) regime. He was recommended by the then prime minister Manmohan Singh. In his application for an Indian passport, Manmohan had said that Patel is very important for the country.

First Published:Dec 10, 2018 8:44 PM IST