1. Raghuram Rajan’s 2nd term: FM Arun Jaitley evades question, says not to discuss through media

Raghuram Rajan’s 2nd term: FM Arun Jaitley evades question, says not to discuss through media

Amid speculation about a possible second term for Reserve Bank Governor Raghuram Rajan, Finance Minister Arun Jaitley today declined to be drawn into the matter...

By: | New Delhi | Updated: May 16, 2016 3:33 PM
Arun Jaitley and Raghuram Rajan Raghuram Rajan’s current three-year term as RBI chief is ending this September. (Reuters)

Amid speculation about a possible second term for Reserve Bank Governor Raghuram Rajan, Finance Minister Arun Jaitley today declined to be drawn into the matter, but said there is a “mature relationship” between the central bank and the government.

“As far as the Finance Ministry and RBI are concerned, there is an institutional relationship between the two. It is a very mature relationship. We at the highest level at the two institutions have discussion and each other views is considered between us,” he said.

He was speaking at an event organised by Indian Women’s Press Corps.

To a question whether Rajan is getting an extension, he quipped “these are not issues which we discuss through the media.”

Raghuram Rajan’s current three-year term as RBI chief is ending this September.

Read: India to renegotiate tax treaty with Singapore: Arun Jaitley

Indicating his interest in a second term, Rajan on May 13 had said he has enjoyed every moment of the job, but there is “more to do”, despite calls from some sections of the ruling BJP against any extension for him.

Senior BJP leader Subramanian Swamy last week had suggested that Rajan should be removed and accused him of being responsible for “unemployment and collapse” of industrial activity.

“In my opinion, the RBI Governor is not appropriate for the country. I don’t want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country… The sooner he is sent back to Chicago, the better it would be,” Swamy had told reporters outside Parliament.

Rajan, who had earlier also served as the Chief Economist of IMF and is known as a key commentator on financial issues globally, is the on-leave Professor of Finance at University of Chicago’s Booth School of Business.

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    Ajay Gupta
    May 16, 2016 at 12:04 pm
    It will be the biggest mistake of bjp If Rajan is given 2nd term. Giving 2nd term to Rajan will be virtual suicide of Modi government. Rajan alone is enough to kill bjp economic development policy and he is the Superman of Congress wisely brought in by PC to cause maximum damage to Modi government and so far he did his job in spectacular way. He silently kept the interest rates at highest at very crucial time and killed the MSME and investment process. Low investment and higher interest rate caused the industry to suffer and banking NPA shooting up.
    Reply
    1. V
      Vinay
      May 16, 2016 at 11:50 am
      Rajan is not going to get it. FOR SURE. There are enough politicians with dubious academic records, unelected leaders and crooked lawyers in this government. These serve very bad for the country. These people get inferiority complex in front of Raghuram Rajan. After all they did not make Rajan the Governor of RBI.
      Reply

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