Jaitley meets PM over Rajan’s successor at RBI

Jaitley meets PM over Rajan’s successor at RBI: Finance Minister Arun Jaitley on Thursday held an hour-long discussion with Prime Minister Narendra Modi over the appointment of a new RBI Governor, a post that will fall vacant on September 4.

RBI Governor

Apropos “Jaitley meets PM over Rajan's successor at RBI” (The Hindu, August 19), the reported quip from the FM that “We will let you know when we decide. You will come to know about the conclusion, not the process.” must have been adequate to shut the journalist’s mouth. But, now, from Ex-RBI Governor Duvvuri Subbarao’s book “Who Moved My Interest Rate?”, we know how hazily selection of RBI Governor is made! Dr Rakesh Mohan and Dr Subbarao were summoned separately to the then FM’s house same day and the person who was found more 'amenable' was selected.
There is a context for stakeholders outside GOI being vigilant about the selection process of the incumbent who will be RBI Governor after September 2, 2016. Right or wrong, a message has been sent out that Dr Raghuram Rajan who needed some more time to complete certain reform processes in the regulatory and supervisory environment in the financial sector, besides long-term structural changes, was being ‘eased out’ by using unethical means, like mounting of baseless allegations by a spokesperson of the ruling BJP. It is common knowledge now that Dr Rajan would have taken the ‘Swamys’ in his stride, if he had the assured support from PM and FM.
The eleventh hour hurry in finding out ‘suitable substitutes’ to fill in vacancies like that of RBI Governor does not augur well for a mature nation like India.

M G Warrier, Mumbai


santhanam said…
As it APPEARS that Dr.Rajan has earned assured support from PM and FM he may be allowed to continue for another term for reforming the regulatory and supervisory environment.I do not know whether it will materialise. But it is my WISH.

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