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RBI Governor Raghuram Rajan, who has left an indelible mark on the institution over the last few years, has come in for flak over his various acts of omission and commission from within the ruling Bharatiya Janata Party (BJP) dispensation. Surprisingly, Rajan has been attacked not just over his policy but even on the pesonal front, indicating an erosion of trust in the power echelons of the country as well as the BJP. We list here, from the stinging personal attack by Subramanian Swamy to the sharp retort by PM Narendra Modi and also the interventions of FM Arun Jaitly and his deputy Jayant SInha and more – Rajan's current three-year term as governor ends in September: <br><a href="https://twitter.com/FinancialXpress" target="_blank">For more business news and analyses, follow us @FinancialXpress </a><br>
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BJP Rajya Sabha MP Subramanian Swamy revealed that he had written a hard-hitting note to PM Narendra Modi over Raghuram Rajan issue and revealed its contents to the media. Swamy lashed out at Rajan for “wrecking” the Indian economy and sought his immediate sacking by PM Modi. In the note to PM, Swamy wrote, “Governor Rajan is hurting Indian economy. The concept of containing inflation by raising interest rates is disastrous. Why should we retain a UPA appointee? He (Rajan) believes in raising interest rates to decrease inflation. This approach is like murdering someone suffering from fever, so that his body temperature drops.” (PTI)<br><a href="https://twitter.com/FinancialXpress" target="_blank">For more business news and analyses, follow us @FinancialXpress </a><br>
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Stepping away from differences on policy issues into the personal space, Subramanian Swamy also alleged that Rajan is “mentally not fully Indian” and has “wilfully” wrecked the economy. “I am shocked by the wilful and apparently deliberate attempt by Dr Rajan to wreck the Indian economy. These actions of Dr Rajan lead me to believe that he is acting more as a disrupter of the Indian economy than the person who wants the Indian economy to improve. He is in this country on a Green Card provided by the US government and therefore, mentally not fully Indian. Mujhe lagta hai RBI Governor hamare desh ke liye anukool nahin hain. The sooner he is sent back to Chicago, the better it would be.” (Reuters)<br><a href="https://twitter.com/FinancialXpress" target="_blank">For more business news and analyses, follow us @FinancialXpress </a><br>
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With the attacks on Raghuram Rajan turning into a political storm and Opposition parties targetting PM Narendra Modi for his silence on the issue, Finance Minister Arun Jaitley stepped in to control the situation and cap the issue once and for all. FM denounced attacks on Raghuram Rajan and said the debate should be about the issues and policies, and not about personalities. “I do not approve of any of these comments being made by anyone as far as personality is concerned, because the RBI and its Governor is an important institution in Indian economy,” Jaitley said. The finance minister further said, “People should be open to discussing all issues and policies, they have a right to support those policies, they have a right to criticise those policies. But this can’t be converted into comments on personalities because that blurs the issue.” Asked if NDA government will consider a second term for Rajan, he said, “These are not the subjects I discuss with media.” (Reuters)
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With an impending US visit, Prime Minister Narendra Modi gave an interview to the respected us newspaper the Wall Street Journal, and a direct question in it over the controversy forced him to to break his silence on the topic even if to retort sharply that the reappointment of RBI governor was an administrative subject. Modi said, "I don't think this administrative subject can be an issue of interest to the media". He added, "Besides, it will come up only in September, not now".
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With high profile personalities going hammer and tongs on the issue, Raghuram Rajan himself expressed interest in a second term, despite calls from sections of the ruling BJP against any extension for him, albeit indirectly saying, ‘there is always more to do’. He added that “There is a lot of fulfillment from making things actually happen for improving the environment… I have enjoyed every moment of the job”. (Reuters)
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Minister of State for Finance Jayant Sinha, the latest to react on the issue, reiterated PM Narendra Modi’s view that a decision on extending the tenure of RBI Governor Raghuram Rajan would be taken at an appropriate time and that the NDA government was committed to the independence of the central bank. “We have a very mature relationship with the RBI. It is an institutional relationship. We believe in strengthening and protecting institutions and ensuring their independence,” said Sinha. (PTI)<br><a href="https://twitter.com/FinancialXpress" target="_blank">For more business news and analyses, follow us @FinancialXpress </a><br>
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A top Finance Ministry official has also revealed that that Raghuram Rajan's extension as RBI governor is to be decided toward end of his tenure. He added that there has been no discussion so far in this regard and his fate will be decided closer to the end of his current tenure in September. (Express photo)<br><a href="https://twitter.com/FinancialXpress" target="_blank">For more business news and analyses, follow us @FinancialXpress </a><br>
Parental status proof must for proving US-born children’s citizenship
