According to Clarivate, Raghuram Rajan is considered a candidate for his “contributions illuminating the dimensions of decisions in corporate finance”.
After his exit created a furor, quarters close to the govt had stated that Rajan was offered a two-year extension but problem was his inability to get a further extension of leave of absence from the Chicago University without losing his valuable tenure.
“So long as PSU banks are primarily governed by a board having the ability to change the management… the government via the ministry has dual governance without responsibility,” said Rajan.
The Banks Board Bureau has “not so clearly distinguished in terms of distance from government and to some extent needs perhaps more work to strengthen its autonomy and independence”, said Raghuram Rajan.
Raghuram Rajan added that India can lecture the world on things such as culture and history, but on growth, it should do that only after achieving 8-10 per cent rate for 10 years.
Former RBI Governor Raghuram Rajan said that one should not be pessimistic that good times are over but there is need to worry, especially if the rate of job creation doesn’t match the rate of new entrants in labour force.
As for the RBI’s apparent suggestion prior to demonetisation to withdraw only 1,000 rupee notes and not the 500 rupee note, Raghuram Rajan said that the more a currency is used for transactions, the more the central bank has to be in readiness to replace it.
Raghuram Rajan interview: In India to release his new book, theformer RBI governor discusses note ban and government-RBI ties
Raghuram Rajan who was the governor of RBI from September 2, 2013 to September 4, 2016 said that the government only asked him to give his views and that the central bank was not asked to take a stand on junking of old 500 and 1000 rupee notes during his term.
The former RBI governor cautions that “efforts to belittle the position by bringing it into the bureaucratic hierarchy are misguided and do not serve the national interest”.
Raghuram Rajan: Titled, “I Do What I Do”, the book is published by HarperCollins India and will be launched in Chennai on September 5, followed by launches in Delhi and Mumbai on September 7 and 8, respectively.
The new insolvency law that came into effect this year has seen a dozen-odd corporates being referred to the National Company Law Tribunal (NCLT) which will ensure either a quick turnaround, or closure.
The RBI had earlier proposed opening “Islamic window” in conventional banks for the gradual introduction of the Sharia-compliant banking. On the instructions of the RBI, an Inter-Departmental Group (IDG) has examined legal, technical and regulatory issues for starting interest-free banking in India and has submitted its report to the government.
Not only such high disparity in compensation makes it difficult for the government to hire top managers laterally at public sector banks, as pointed out by Rajan, it also impacts the motivation of public sector managers who have to fiercely compete with their private sector peers.
“The Act clearly says four percent is the target and the two to six percent band has been given only to absorb temporary or one-time shocks.”