Reserve Bank of India governor Raghuram Rajan met Prime Minister Narendra Modi on Wednesday. Before meeting the PM, the governor had also met finance minister Arun Jaitley, reports fe Bureau in New Delhi.
Official sources told FE that much should not be read in Rajan’s meeting with the PM as he routinely meets him and the finance minister. “The RBI governor meets the PM and FM every two months before the monetary policy is due as a courtesy meeting,” officials aware of the meeting said.
The monetary policy is due on June 7.
There’s widespread speculation in official and industry circles whether Rajan, whose term as the RBI governor ends in September, will be given an extension or not.
When asked, Jaitley on Wednesday had declined to comment. Rajan has recently been attacked by BJP leader Subramanian Swamy, who has accused him of wilfully wrecking the economy and alleging that he is “not fully Indian” since he has been renewing his US green card. Swamy has also written to the PM urging that he be sacked.
However, the BJP has officially distanced itself from Swamy’s comments.
In fact, Jaitley on Thursday told NDTV in an interview that he does not approve of “personal” attacks. “I don’t approve of personal comments against anyone, let alone the RBI governor,” he said when asked about the continuing attack on Rajan in the past few months and whether there was an effort on part of the government to ring-fence the governor.