MUMBAI- The Governor of India’s central bank, Urjit Patel, resigned abruptly yesterday after a months-long tussle over policy with the government that has raised concerns about the bank’s independence as a national election nears.

Government officials have been pressuring the Reserve Bank of India to allow some bad-debt-laden public sector banks to lend more easily, and pushed for it to hand over some of its surplus reserves to help fund the fiscal deficit. Prime Minister Narendra Modi’s ruling Hindu nationalist Bharatiya Janata Party (BJP), which must call national polls by May, faces anger in rural communities because of slumping farm incomes, and broader concerns about a lack of jobs growth in small businesses that are finding it hard to get banks to lend them money. Getting control of the reserves would give the government more flexibility in spending on welfare policies and farm support schemes. Patel cited “personal reasons” for his decision to immediately step down.(Reuters)…[+]