The question on RBI Governor Raghuram Rajan’s tenure echoed on Tuesday as he addressed the press on the second bi-monthly monetary policy for 2016-17. Rajan’s tenure has become a subject of speculation post senior BJP leader Subramanian Swamy’s call for his ouster. The tenure of RBI Governor, who was appointed by previous Congress-led UPA government, comes to an end on September 4.
“As far as the question of my continuing in the position after September 4 goes, it would be cruel of me to spoil the fun that press is having with all its speculation,” Rajan said.
Parrying the suspense further, Raghuram Rajan said the decision is to be taken after consultation between the government and the incumbent.
“Seriously, in such cases a decision is reached after discussion between government and the incumbent. I am sure you will know when there is news,” he added further.
Off late, there have been reports ranging from his desire not to seek a second term to his writing to policymakers to put an end to being dragged in the political slug fest over the issue. Refusing to reveal his mind on a second term, Rajan said he was “personally intrigued by all the letters I am supposed to have written” on the issue.
Raghuram Rajan has been facing a continuous attack by BJP MP Subramanian Swamy who alleged that RBI Governor has failed to lower interest rates and boost the economy. The latter had even written twice to the Prime Minister seeking termination of his service even before his term comes to an end in the first week of September.
On the other hand, Union Finance minister Arun Jaitley, in an interview to the press earlier last month, had thrown his weight behind the Reserve Bank Governor.
“I do not approve of any of these comments being made by anyone as far as the personality is concerned, because the RBI and its Governor is an important institution in Indian economy,” Jaitley had told press on May 31 during his six-day visit to Japan.
Denouncing attack on the RBI Governor, Jaitley had said the debate should be about the issues and policies, and not about the personalities. On a question if the Central government will consider a second term to Rajan, he had said, “These are not the subjects I discuss with media.”
(With inputs from the Agencies)