Swamy may want RBI Governor sent to Chicago, but Raghuram Rajan would prefer second term


RBI Governor, Raghuram Rajan has expressed interest in second term adding that he enjoyed every moment of his current job but there was “more to do”, despite calls from some sections of the ruling BJP against any extension for him.


Rajan told a business channel in London, “There is a lot of fulfillment from making things actually happen for improving the environment… I have enjoyed every moment of the job.”

Rajan, whose current three-year term as the Reserve Bank Governor is coming to an end in September this year, was asked about the “heat from the BJP and the government” on whether he should be given another term and about the politics happening on this matter.

To another question, according to PTI, on whether he felt his agenda as the central banker would remain half-finished if the second term was not granted, Rajan told CNBC news channel, “It’s a good question. I think we have accomplished a lot… I think that … I mean, there is always more to do.”

Accusing him of being responsible for “unemployment and collapse” of industrial activity, senior BJP leader, Subramanian Swamy, had on Thursday demanded Rajan’s removal saying that he should be sent back to Chicago.

Swamy had said, “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.”

The RBI Governor is currently on a visit to the UK for a series of lectures and recently said that he had not heard from the government on extension of his term at the central bank.

After assuming charge as the RBI Governor in September 2013, Rajan has gradually raised the short-term lending rate from 7.25 per cent to 8 per cent and retained the high rates throughout 2014.

He had earlier kept the rates high, citing inflationary concerns despite intense pressure from the Finance Ministry and the industry for softening them with a view to boosting growth.

The Governor began the process of lowering the rates in January 2015 and since then it has come down by 1.50 per cent to 6.50 per cent.