BJP MP Subramanian Swamy has demanded the removal of RBI Governor Dr. Raghuram Rajan. In a strongly-worded letter to Prime Minister Modi, Swamy sought immediate sacking of the former IMF Chief Economist, going to the extent of calling Dr. Rajan as “mentally not fully Indian” and alleging that he has “wilfully” wrecked the economy.
Swamy has been targeting Raghuram Rajan off-late. Last week, he had claimed that RBI governor’s steps to raise interest led to the “collapse of industry” and “rise of unemployment”.
“The reason why I recommend this is that I am shocked by the wilful and apparently deliberate attempt by Dr Rajan to wreck the Indian economy,” he wrote adding his concept of raising interest rates to contain inflation was “disastrous.”
“These actions of Dr Rajan lead me to believe that he is acting more as a disrupter of the Indian economy than the person who wants the Indian economy to improve,” he added.
He also cited that bad loans with public sector banks has doubled to Rs 3.5 lakh crore in two years in his letter to PM Modi seeking termination of Rajan’s services with immediate effect.
Raghuram Rajan was appointed RBI Governor by the previous UPA government in September 2013 for a three-year term, which can be extended.
“Moreover he is in this country on a Green Card provided by the US government and therefore mentally not fully Indian. Otherwise why would he renew his Green Card as RBI Governor by making the mandatory annual visit to the US to keep the Green Card current?” Swamy said in his letter.
The senior BJP leader had only last week stated that Rajan was “not appropriate for the country” as he had in the garb of controlling inflation raised interest rates leading to “collapse of industry and rise of unemployment in the economy.”
“The sooner he is sent back to Chicago, the better it would be,” he had told reporters in Parliament House last week during the budget session.
Dr. Rajan is the on-leave Professor of Finance at the University of Chicago’s Booth School of Business. After assuming charge as RBI governor in September 2013, Rajan gradually raised the short-term lending rate from 7.25 per cent to 8 per cent and had retained the high rates throughout 2014.
He 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.
“I cannot see why someone appointed by the UPA Government who is apparently working against Indian economic interests should be kept in this post when we have so many nationalist minded experts available in this country for the RBI Governorship,” Swamy said in his letter to PM.
(With inputs from the PTI)