Raghuram Rajan not seeking second term as RBI governor: report

The RBI chief is said to have written to PM Modi to relieve him of his duties after his term ends in September, Ananda Bazar Patrika reported

Amid growing uncertainty on whether the Reserve Bank of India (RBI) Governor Raghuram Rajan will get a second term after his tenure ends in September, the RBI governor himself has reportedly communicated to Prime Minister Narendra Modi to relieve him of his duties after his term ends, Bengali daily Anandabazar Patrika said on Wednesday.

According to the newspaper, the RBI governor wants to return to the United States (US) to pursue his academic career, the newspaper reported, quoting anonymous sources. Rajan was a Professor of Finance at the Chicago University's Booth School of Business before taking charge as the RBI supremo. His family has already left for the US, the newspaper reported.

The 53-year-old economist may also consider associating himself with an university to carry out definitive research on the present state of the Indian economy, the report further said.

According to the Bengali daily, Modi, despite strong opposition from lawmaker Subramanian Swamy, is reluctant to relieve Rajan after the end of term and wants him to continue as the RBI chief for a second term. Finance minister Arun Jaitley has has also reportedly come forward in support of Rajan.

The newspaper said that Jaitley is of the view that if Rajan is removed upon completion of his term, it may send out negative vibes to the national and international business community. Also, the policy and the outlook which the RBI took under Rajan's command, has aided the country's GDP growth.