Raghuram Rajan Won’t Continue as RBI Governor After September 2016

“I will, of course, always be available to serve my country when need,” says RBI Governor Raghuram Rajan.

Reserve Bank of India (RBI) Governor Raghuram Rajan revealed that he will be returning to academia after his term as Governor of RBI ends on 4 September 2016.

In a letter (below) to the employees of the bank, Rajan announced that his term in the office and his leave from the University of Chicago will come to an end this year.

While I was open to seeing these developments through, 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 4 September 2016.

Read the full statement here:

Raghuram Rajan's Letter to RBI Staff

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Rajan who took over the RBI in 2013, said in his letter that he feels proud to have delivered on the “proposals” he laid out before the start of his term.

His proposal included helping the government reform the process of appointing Public Sector Bank management through the creation of the Bank Board Bureau.

Interestingly, during the tenure of his appointment, Rajan attracted a large fan following in India and abroad as well as been censured by critics.

Most vocal being Subramanian Swamy who had urged Prime Minister Narendra Modi not to re-appoint Rajan. On Rajan announcing his exit, Swamy said:

Raghuram Rajan is a government employee and government employees are not selected on the basis of popular vote.

R3 has said he will go back to US. Whatever figleaf he wants for hiding the reality we should not grudge it. Say good bye!

— Subramanian Swamy (@Swamy39) June 18, 2016

However, his exit has attracted reaction from various personalities from the world of banking and politics.

Listen to Swamy’s reaction on BloombergQuint:

Industry Reactions

From the former and current finance ministers to the top brass of the banking industry to politicians have expressed their disappointment towards Rajan’s exit.

Also Read: ‘Sad’, ‘Disappointed’: Industry Reacts to Raghuram Rajan’s Exit

I’m disappointed and profoundly saddened by the decision of Raghuram Rajan to leave RBI. India a big loser from Raghuram Rajan’s decision to leave as RBI Governor. The government did not deserve Raghuram Rajan as RBI Governor [with its] campaign of insinuations, baseless allegations and puerile attack. 

P Chidambaram, Former Finance Minister to The Economic Times

Former Finance Minister, P. Chidambaram, on #RaghuramRajan's exit https://t.co/WiTpYvs4Ad

— The Quint (@TheQuint) June 18, 2016

Dr. Raghuram Rajan has announced his intention to go back to academics at the end of his current assignment.(1/2)

— Arun Jaitley (@arunjaitley) June 18, 2016

The Government appreciates the good work done by him and respects his decision. A decision on his successor would be announced shortly.(2/2)

— Arun Jaitley (@arunjaitley) June 18, 2016

HDFC Chairman Deepak Parekh on #RaghuramRajan's exit | @BloombergQuint
https://t.co/c4oYA1TyTt

— The Quint (@TheQuint) June 18, 2016

This is bad news for the nation, and development of the country. His work and tenure have been excellent. Nation wants to know why he has chosen not to accept the second term.

KC Tyagi, JD(U)

Its sad and disappointing and it was expected. when you hound a self respectig person, what else is he supposed to do? 

Manish Tewari, Congress

Also Read: HDFC’s Deepak Parekh Wonders What Made Raghuram Rajan Leave