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Badgered by political attacks on him, RBI Governor Raghuram Rajan on Saturday said he will not be considering a second term as the chief of the central bank.
In a statement to his colleagues, Rajan said he will be returning to academics after his term ends on September 4.
“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. I will, of course, always be available to serve my country when needed,” Rajan said in his statement.
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Rajan also said that his work on containing inflation, cleaning bank books was not over and he is confident that his successor will take RBI to new heights.
READ: Rajan thanks team for ‘fantastic journey’
Rajan’s current three-year tenure ends in September and speculation was rife about whether he would get an extension. The debate was initially spurred by Rajya Sabha BJP MP Subramaniam Swamy who openly called out for Rajan’s ouster and even wrote letters to the Prime Minister.
READ: Rajan not seeking second term: Here’s how Twitterati reacted
But since then, at least seven online petitions have surfaced, collecting more than 60,000 signatures in favour of Rajan’s second term.
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Rajan also rued that his work was “yet to be completed” on two significant matters — containing inflation and
cleaning up the books of banks — and he “was open to seeing these developments through”.
READ: India Inc ‘saddened’ by RBI chief Rajan’s decision over second term
But, he decided to return to academia after the end of his current term “on due reflection, and after consultation
with the government”, the on-leave Professor of Finance at Chicago University said, without giving any specific reason. There have been concerns that Rajan’s exit, which has been termed as ‘Rexit’ to give it a play like Brexit and
Grexit, could lead to adverse impact on the country’s financial markets.
READ: As long as he’s going, it’s good: Subramanian Swamy on Rajan
While the Governor did not specifically refer to this, but said in his letter that the RBI would be able to “ride out
imminent sources of market volatility like the threat of Brexit.”
(With PTI inputs)
