RBI governor Raghuram Rajan has finally said that he would not serve the second term, denying the media a joy ride for two more months.
In an internal mail to RBI staff, Rajan said he would return to his academic career when his term ends on September 4. “I am an academic and I have always made it clear that my ultimate home is in the realm of ideas. The approaching end of my three-year term, and of my leave at the University of Chicago, was therefore a good time to reflect on how much we had accomplished,” he wrote.
Recollecting the accomplishments during his tenure, he said controlling inflation, 150-basis point cut in the interest rates, improving the balance sheets of banks through the Asset Quality Review, helping the government to introduce several banking reforms, restructuring state-run bank management appointments among others.
Above all, the rupee value remained more balanced and static during his term compared to a volatile period witnessed during his predecessor’s term.
The main controversy cropped up when BJP leader Subramaniam Swamy dashed off a letter to PM questioning his integrity as an Indian and accusing him of being an international banker with varied interests. Former Finance Minister P. Chidambaram even said that the Modi government does not deserve a highly talented man like Rajan, a a rare certification that no other governor received from a former finance minister.