Raghuram Rajan’s successor soon, no panel to look for new RBI chief

"We don't want unnecessary speculation," a government spokesperson told PTI

By: PTI | New Delhi | Updated: June 20, 2016 7:30 pm
His term ends on September 4. Finance Minister Jaitley said a decision on Rajan’s successor will be taken soon. (Express Photo by Nirmal Harindran) Raghuram Rajan’s term ends on September 4. Finance Minister Jaitley said a decision on Rajan’s successor will be taken soon. (Express Photo by Nirmal Harindran)

The government will announce the successor of outgoing RBI Governor Raghuram Rajan well in advance and there won’t be any search panel to look for the new chief of the central bank, an official source said.

“It (announcement of new Governor) will happen reasonably in advance. We don’t want unnecessary speculation,” said a top government source, adding that “the process of selection is already on”.

WATCH VIDEO | Keystrokes: No Second Term For Raghuram Rajan

 

Rajan’s term comes to end on September 4.

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The source also said the government will not be setting up a search panel for selection of the new Reserve Bank Governor.

Watch Video: What’s making news

 

Buffetted by political attacks coupled with unending speculation over his continuance, Rajan on Saturday announced that he would return to academia after expiry of his term on September 4, putting to rest all speculation over the issue.

“…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,” Rajan had said in a message to the RBI staff.

Soon after the announcement, Finance Minister Arun Jaitley in a Facebook post lauded Rajan saying the government appreciated the “good work” done by him.

“Dr Raghuram Rajan has announced his intention to go back to academics at the end of his current assignment. The government appreciates the good work done by him and respects his decision,” he had said, adding a decision on his successor would be announced shortly.

Stocks and rupee today took an early morning plunge on Rajan’s no to a second term, but soon recouped their losses on hectic buying by some institutions and soothing voices from rating agency Fitch and some prominent marketmen while fading Brexit worry helped too.

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  1. T
    T DUTTA
    Jun 21, 2016 at 6:42 am
    ALL BANK BRANCHES ALL OVER INDIA MUST BE AUDITED---AT PRESENT SMALL BANK BRANCHES ARE NOT AUDITED YEAR AFTER YEAR--what is the logic?--what is the guarantee that there will be no fraud or misappropiation in small branches--AMOUNT SAVED AS AUDIT FEES IS VERY SMALL PERCENTAGE OF TOTAL NPA---VERY SMALL PERCENTAGE OF LOANS WRITTEN OFF PERIODICALLY
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