Efforts to clean the banking system cost Urjit Patel his job.

There is insufficient evidence to prove that Urjit Patel’s insolvency law had created disagreements with the Indian government that cost him his job.

There is insufficient evidence to prove that Urjit Patel’s insolvency law had created disagreements with the Indian government that cost him his job.The circular published by Reserve Bank of India (RBI) on February 12, 2018, had forced all the banks to classify borrowers as defaulters when they delayed repayments. It had also barred the defaulting company founders from buying back their firms during insolvency auctions. It also pushed them into bankruptcy if a resolution time was not met with.

However, the Supreme Court overruled the circular on April 1, 2019.

Former RBI Governor Urjit Patel's attempts to dilute a new bankruptcy law had reportedly caused disagreements between the Union government and the central bank. This was mentioned in his recently published book 'Overdraft: Saving the Indian Saver.' However, we cannot prove whether this caused him to resign.