But the minister was silent on Rajan's criticism of the note-ban, which has disrupted everyone's life in general and that of small traders and small businesses in particular.
Addressing an audience at the University of California in Berkley on Friday, Rajan said for four years -- 2012 to 2016 -- India was growing at a faster pace before it was hit by two major headwinds.
Rajan's statement comes amid prevailing tensions between the Reserve Bank and the Finance Ministry.
Rajan, who was RBI governor for three years till September 2016, is currently teaching at the Chicago Booth School of Business.
In his reply to the Estimates Committee, Rajan said that in such an environment bankers' became over confident started lending large loans 'based on project reports by the promoter’s investment bank, without doing their own due diligence'.
Earlier, various reports claimed that Kumar blamed Rajan's policies for the declining growth rate over the last three years.
On November 8, 2016, the Centre banned Rs 500 and Rs 1,000 currency notes to curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activities and terrorism.
Raghuram Rajan noted that reforms are happening in India but more slowly than one would wish.
On possibility to join politics, Rajan said, "The answer is no...on issue of politics my wife says very clearly no."
Raghuram Rajan was referring to rising populist nationalism and also agitation by powerful communities, including Patidar community in Gujarat which is feeling discriminated and is seeking reservation in jobs.
Former RBI Governor Raghuram Rajan has rejected AAP chief Arvind Kejriwal's offer of a Rajya Sabha seat.
An AAP leader, who did not wish to be identified, said the party will not field any of its leaders for the three Rajya Sabha seats from Delhi that will fall vacant early next year.
The US Treasury said it will be keeping a “close watch” on the RBI's in view of the “notable increase in the scale and persistence” of dollar purchases.
Raghuram Rajan is one of the six economists on the list of probable winners compiled by Clarivate Analytics.
Raghuram Rajan has said that in hindsight it appears that the central bank under his governorship could have managed the liquidity in banking system in a better manner on certain occasions
Raghuram Rajan said India can lecture the world on things such as culture and history, but on growth, it should do that only after achieving 8-10 per cent rate for 10 years.
Rajan said that had the government thrust the note ban decision upon him, the only option he would have had was to resign
Rajan said India cannot afford to become an intolerant society as tolerance is "extremely important" for its economic growth
Rajan was RBI governor in February 2016 when he was asked by the government for his views on junking of old 500 and 1,000 rupee notes, he revealed in his book 'I do what I do'
NPAs have risen to over Rs 9 lakh crore and by the Banking Regulation (Amendment) Bill passed by Parliament last month, the RBI has been given power to refer these cases to the Insolvency and Bankruptcy Board.
Top News
Latest News
