Raghuram Rajan may have stayed as RBI Guv had govt reacted sooner, says father R Govindarajan

By: | Updated: June 29, 2016 11:29 AM

The sudden declaration of exit by RBI Guv Raghuram Rajan has raised lot of impetus. The father of Raghuram Rajan and retired senior bureaucrat R Govindarajan said that Rajan may have continued as a RBI Governor if the govt had taken a pronto reaction when the attacks on him started. “

RBI chief RajanPrime Minister Narendra Modi on Monday in an interview with Times Now disapproved of recent attacks on RBI Governor Raghuram Rajan and some top Finance Ministry officials, saying they are “inappropriate”. He said Rajan was ‘no less patriotic.’ (Reuters)

Almost two weeks after RBI Governor Raghuram Rajan has announced his intention to return to academia after completion of his term in September, controversy surrounding his second term does not seem to be waning. The father of Raghuram Rajan and retired senior bureaucrat R Govindarajan said that Rajan may have continued as a RBI Governor if the govt had taken a pronto reaction when the attacks on him started. “I feel if the government had responded promptly when the attacks started, possibly he wouldn’t have come to this decision,” Govindarajan, who retired as a senior Intelligence officer, said.

Rajan, who was appointed as RBI Governor by UPA govt for three years, announced on June 18 that he would not seek a second term at the office. His term will end on September 4. Raghuram Rajan scotched all media ballyhoo and speculation and said that he will not seek a second term after his first ends in September. He further said that he would rather like to go back to academic work after September 4, when he retires as Governor of the Reserve Bank of India (RBI).

It is vital to note here that for a couple of months media had made huge news business out of whether the Modi government would continue with him or not.  Over the last few months, his ‘extension’ became the subject of fevered speculation as it became increasingly apparent that sections within the Modi government were uncomfortable with his continuance. BJP MP Subramanian Swamy had launched an attack against Rajan following which Rajan decided not to continue as RBI Governor. In a letter dated May 16, Swamy urged PM to “terminate” Rajan’s services “effective immediately” or when his term ends in September because he was “mentally not fully Indian”.

Prime Minister Narendra Modi on Monday in an interview with Times Now disapproved of recent attacks on RBI Governor Raghuram Rajan and some top Finance Ministry officials, saying they are “inappropriate”. He said Rajan was ‘no less patriotic.’

Mythili,  R Govindarajan’s wife also commented on Rajan’s sudden exit and said “Let anyone question his policies, or style of functioning. But isn’t it unfair attacking someone personally, questioning his patriotism? Life hasn’t been feasible for us. My husband was the kind of man who lived for his job, who considered his wife, children all secondary. It was left to me to manage the children.”

“The young Rajan was an avid reader. Had I allowed him to study Economics in St Stephens, he would have entered politics like leaders we see in JNU these days. That was the age”, added Govindarajan.

Govindarajan’s own career with the government concluded on a malodorous note, and he is believed to have been contraveneda promotion as R&AW chief because of a run-in with then prime minister Rajiv Gandhi over Bofors.

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