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Amid debate over Reserve Bank of India (RBI) GovernorRaghuram Rajan’s second term, the government is said to be in no hurry to decide on the matter. The Centre will take a call in August, just a month before his three-year term ends, The Economic Times reported on Monday, quoting an unnamed government official.
Rajan’s extension as RBI governor has been the topic of much speculation, and has intensified after BJP leader and Rajya Sabha MP Subramanian Swamy wrote to Prime Minister Narendra Modi complaining about Rajan’s actions and sought his immediate removal.
There has been no discussion yet on Rajan’s term as the Centre does not begin these talks so early. “These decisions are taken much closer (to the date), and reached quickly,” one official told the publication.
Meanwhile, Swamy’s statements will not have an impact on the Centre’s decision, nor will Rajan’s global status as a star among central bank governors and economists, a senior government official told the newspaper. “In the past, people like Y V Reddy and Bimal Jalan have performed the role with great distinction and there is nothing to show that homegrown talent would be in any way inferior," the second official, who also remained unnamed, said.
Swamy’s letter to the Prime Minister had stirred a hornet’s nest as the debate on whether Rajan must be given a second term came into limelight. He highlighted how Rajan was ‘not mentally fully Indian’ and how his policies had impacted the economy negatively. Finance Minister Arun Jaitleywent on to say that both the RBI and Finance Ministry shared a ‘mature relationship’.
Govt to keep everyone guessing till the 11th hour on Raghuram Rajan's fate | Business Standard News
Rajan’s extension as RBI governor has been the topic of much speculation, and has intensified after BJP leader and Rajya Sabha MP Subramanian Swamy wrote to Prime Minister Narendra Modi complaining about Rajan’s actions and sought his immediate removal.
There has been no discussion yet on Rajan’s term as the Centre does not begin these talks so early. “These decisions are taken much closer (to the date), and reached quickly,” one official told the publication.
Meanwhile, Swamy’s statements will not have an impact on the Centre’s decision, nor will Rajan’s global status as a star among central bank governors and economists, a senior government official told the newspaper. “In the past, people like Y V Reddy and Bimal Jalan have performed the role with great distinction and there is nothing to show that homegrown talent would be in any way inferior," the second official, who also remained unnamed, said.
Swamy’s letter to the Prime Minister had stirred a hornet’s nest as the debate on whether Rajan must be given a second term came into limelight. He highlighted how Rajan was ‘not mentally fully Indian’ and how his policies had impacted the economy negatively. Finance Minister Arun Jaitleywent on to say that both the RBI and Finance Ministry shared a ‘mature relationship’.
Govt to keep everyone guessing till the 11th hour on Raghuram Rajan's fate | Business Standard News
