Ending all speculations on his continuance as RBI Governor for 2nd term, Governor Raghuram Rajan announced to quit the RBI as his term ends on September 4.
In a press release addressed to RBI staff he said, “he will be returning to academia as his terms ends on 4th September 2016.”
Dr. Raghuram Rajan to quit as RBI Chief after his tenure ends on 4th Septmeber
Raghuram Rajan is 53 years old and is first RBI governor since 1992 not to seek a second term as RBI’s Governor.
Fin minister Arun Jaitley said that the Government appreciates the good work done by him and respects his decision and decision will soon be taken to who will be successor to Dr. Rajan.
Former Fin minister P Chidambaram has expressed his disappointment and sadness over the decision.
The RBI governor’s decision to quit comes at a time when he had come under a vicious attack from BJP lawmaker Subramanian Swamy who has accused him to wreck the Indian economy.
Mr Swamy had contended that the RBI governor is mentally not fully Indian since he continues to renew the Green Card issued to him by US government.
Rajan also listed out a number of achievements of the RBI during his tenure, such as putting in place an inflation-focused framework, 150-basis point cut in the interest rates, improving the balance sheets of banks through the Asset Quality Review, assisting the government with reform state-run bank management appointments and a restructuring of the RBI among others.
Rajan thanked his team at the RBI. “I am confident my successor will take us to new heights with your help. I will still be working with you for the next couple of months, but let me thank all of you in the RBI family in advance for your dedicated work and unflinching support. It has been a fantastic journey together!” his letter read.