India central bank boss to step down in surprise move

Sebi exchanges beef up surveillance to tackle Rexit jitters

Rajan announced that he would return to the academic world at the end of his term on September 4, 2016, adding he will always be available to serve his country when needed and asserted that his “successor” would take the nation to new heights.

Rajan was known to have a good working relationship with the Indian prime minister, who called the RBI governor a “good teacher” on economic matters.

Given Rajan’s global stature, various policymakers and economists have expressed disappointment at Rajan’s decision not to seek a second term and said it would prove costly for the Indian economy. “As I had said some time ago, this government did not deserve Rajan”.

Continuing his tirade against Reserve Bank of India Governor Raghuram Rajan, BJP Rajya Sabha MP Subramanian Swamy on Sunday said Rajan has been acting as a “Congress agent” ever since the Bharatiya Janata Party came to power in May 2014. “A week back he was sounding very much interested in serving a second term”. “I wish Rajan all the very best for the years ahead”, Kochhar said in a statement today. “While Mr Panagariya is a professor of economics at Columbia University (in the US), as vice-chairman of Niti Aayog he has gained experience on how the Indian government works and knows the thinking of the Narendra Modi government and what trajectory it wants to take”, a source in the finance ministry said.

In a note to Reserve Bank of India staff announcing his decision, Rajan said, “We have worked with the government over the last three years to create a platform of macro-economic and institutional stability”.

Rajan was appointed RBI Governor by the UPA government in 2013 when Chidambaram was the finance minister.

Rajan’s decision to make public his decision against second term is being seen in some quarters as his unhappiness over the way things have developed in recent months with regard to a barrage of personal attacks on him from some quarters and the government reaction to that.

The BJP leader accused Rajan of “sabotaging the country’s economy by trying to put all small, medium industries out of business”.

Rai, the former Comptroller and Auditor General of India who is known to have flagged the 2G scam, is now heading the newly-constituted Banks Board Bureau, set up to help the government appoint heads of public sector banks and advice on banking reforms.

“This fascist government is sending message to regulators that if you do not toe our line we will mount a campaign of calumny and wild insinuations and bludgeon you into submission”, Congress spokesperson Manish Tewari said, accusing the BJP of “hounding out” Rajan.

The candidates are Vijay Kelkar, Rakesh Mohan, Ashok Lahiri, Urjit Patel, Arundhati Bhattacharya, Subir Gokarn and Ashok Chawla, the official said, speaking on condition of anonymity due to the sensitivity of the matter.

Like Rajan, Sinha was made Sebi Chairman during the previous UPA regime but was given a surprise and rare extension by the NDA government in February days before his already extended tenure of five years was to end.