Reserve Bank of India Governor Raghuram Rajan’s announcement to leave his position in September this year and join the academia, will affect the financial system as predicted by analysts.
Held in admiration by investors in India and foreign nations as well for predicting the 2008 global financial crisis, Rajan is a former Chief Economist at the International Monetary Fund.
After being appointed as the RBI’s head in September 2013, he brought down inflation from multiple digit variables to 5.8 percent to the current status. India also experienced brisk expansion in its economy by 7.9 percent in the fourth quarter of 2015-16.
His style of functioning and futuristic approach helped the central bank to contend India’s macroeconomic balance, which is in a critical condition for high inclusive growth.
Rajan’s leadership was felt not quite promising and credible by some of the members of the government. BJP Rajya Sabha MP Subramanian Swamy had made many unsavoury comments against Rajan. And as a result, Prime Minister Narendra Modi has kept himself far away from giving his stand on this issue.