Reserve Bank of India (RBI) governor Urjit Patel’s shock resignation following a policy tussle with the government sent tremors through financial markets on Tuesday, and investors are keen to see the government quickly name a credible replacement. Foreign and domestic investors say any openly political appointee with little macroeconomic experience would not sit well in equity, currency and debt markets that have already sold off following setbacks suffered by Prime Minister Narendra Modi’s Bharatiya Janata Party in state polls this week. Investors worry the government will use the central bank to do its short-term bidding to boost the economy for political reasons, with a general election due by May, without fully considering the long-term consequences for inflation and financial stability. Patel announced his resignation on Monday, after India’s financial markets had closed. Among the candidates close to Modi and being touted by government officials is Hasmukh Adhia, who retired a...

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