Raghuram Rajan announces his resignation amid speculations

Mumbai: Critiques of Raghuram Rajan, Governor of RBI, have taken a sigh of relief after he announced his resignation which is due on September, this year.

After serving remarkably well for almost three years, whether it is bringing down the inflation rate or stabilizing Indian currency, he refused to renew his tenure for the next term amid much speculations and controversies, questioning his eloquence to understand the complex banking system of India.

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This concluded that he won’t be serving as a governor of RBI for a second term.

As it was previously reported, Rajya Sabha MP, and former Harvard professor Subramanium Swamy, carried out bad campaigning against Raghuram Rajan saying his policies does not suit the Indian system, condemning the policies he came up with for dealing with bad loan menace in the banking system.

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On which Subramaniyam Swamy said, former professor of Chicago University is undoubtedly an accomplished academician and economist but for India he is a misfit.

When Raghuram Rajan was asked if this is the reason for his resignation he said “It is not Swamy. I disagree with that completely. Swamy was doing what the NDA government and the BJP wanted him to do. Has the Finance Minister or the BJP strongly distanced themselves from Swamy’s position? The BJP, in fact, endorsed the position.”

Envisaging the involvement of RSS in this development Rajan said “It seems, the RSS has prevailed upon Prime Minister Narendra Modi over the matter, which is very worrying. It is sad that the prestige and autonomy of the RBI Governor’s office has been undermined in the process.”

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Taking the inclusive advantage of this statement, oppositions came up with their firing accusations. Where P. Chidambaram, who was Union Finance Minister when Rajan was appointed as Governor of RBI under the UPA government in 2013 said: “I am disappointed and profoundly saddened by the decision of Dr Raghuram Rajan to leave the RBI on completion of his term on September 4, 2016, but I hasten to add that I am not surprised at all.”

The RBI Governor expressed his irate for the current government said “The government had invited this development through a craftily planned campaign of insinuations, baseless allegations and puerile attacks on a distinguished academic and economist”. “As I had said some time ago, this government did not deserve Dr Rajan. Nevertheless, India is the loser.”

 

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