RBI governor’s term should be four years and not three, says Raghuram Rajan
He told a panel of parliamentarians that it might be worth increasing the tenure, citing the US Federal Reserve’s chair as an example.
Reserve Bank of India Governor Raghuram Rajan on Thursday said the post he holds should come with a longer tenure as three years is too short. Rajan’s term ends in September. Rajan said a four-year term for similar positions is common around the world, and used the chairperson and vice-chairperson of the United States Federal Reserve as an example, The Indian Express reported.
Rajan was briefing the Parliament’s Standing Committee of Finance when he was asked his views on the length of the RBI governor’s term. The Committee was headed by Congress leader M Veerappa Moily. Rajan was also asked a question on the country’s bad loan situation, to which he reportedly answered that the worst is over.
Rajan had announced earlier in June that he will not continue for a second term if asked, and that he will return to academia. He and members of the ruling Bharatiya Janata Party government have had an uneasy relationship, with senior party leader Subramanian Swamy calling for his dismissal.
