Rajan says no to second term as RBI Guv, speculations rife over his successor

Rajan already made it clear on Saturday that he will not seek a second term in the office.

 

In a statement to his colleagues now available with media, Rajan said," While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016."

 

Union Finance Minister Arun Jaitley on Saturday announced that Reserve Bank of India Governor Raghuram Rajan's successor will be announced soon.

 

Rajan in his statement said he will be available to serve the country when needed.

 

He said, "Colleagues, we have worked with the government over the last three years to create a platform of macroeconomic and institutional stability. I am sure the work we have done will enable us to ride out imminent sources of market volatility like the threat of Brexit. We have made adequate preparations for the repayment of Foreign Currency Non-Resident (B) deposits and their outflow, managed properly, should largely be a non-event."

 

Reflecting upon his initial commitments, he said, "We have done far more than was laid out in that initial statement, including helping the government reform the process of appointing Public Sector Bank management through the creation of the Bank Board Bureau (based on the recommendation of the RBI-appointed Nayak Committee), creating a whole set of new structures to allow banks to recover payments from failing projects, and forcing timely bank recognition of their unacknowledged bad debts and provisioning under the Asset Quality Review (AQR)."