New Delhi: On Saturday, Raghuram Rajan caught many by surprise after he unexpectedly announced that he would not serve a second term as governor of the Reserve Bank of India.
The maverick banker said he would return to academics when his three-year term ended in September. His announcement has led to various sepculations whether it was his own call or it's a forced exit.
According to a report in the Economic Times, Raghuram Rajan may have got another term as head of the Reserve Bank of India but he would apparently not have been available for the period that the government wanted him. hat possibly led to Rajan's unexpected announcement on June 18.
"The government was offering another regular term but he was available only for a shorter duration," the daily quoted a senior government offcial as saying.
In his letter to staff, the governor had said: "While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as governor ends on September 4."
This had been interpreted by some to mean that Rajan wanted a second term and that the government was not keen on giving him an extension.
Known for his wit and acumen, Rajan has been vocal with his thoughts and has taken a stand and done so whenever deemed necessary.
In the past Raghuram Rajan has contradicted Finance Minister Arun Jaitley's take on Indian economy during China slowdown. He has also expressed concern about overburdening central bank to fix struggling economy. He has also asked real estate players to cut prices rather than rely on rate cuts. Rajan also created buzz after he said that he didn't have faith in exports through 'Make in India' initiative. Rajan’s description of the Indian economy as andhon mein kaana raja (a one-eyed king in the land of the blind), invited flak from ruling BJP with FInMIn Arun Jaitley expressing his disapproval of the former's comment.
