Raghuram Rajan leaving RBI is India's loss: Chidambaram

Expressing disappointment over Raghuram Rajan's decision to leave his post as the Reserve Bank of India (RBI) Governor on the completion of his term this year, former home minister P. Chidamabaram on Saturday asserted that this was clearly India's loss and lashed out at the Centre for inviting this development.

"I am disappointed and profoundly saddened by the decision of Dr Raghuram Rajan to leave the RBI on completion of his term on September 4, 2016, but I hasten to add that I am not surprised at all," Chidambaram said in a statement.

Slamming the Bharatiya Janata Party (BJP)-led Centre for being responsible for this development, he added that it was the 'craftily planned campaign of insinuations, baseless allegations and puerile attacks on a distinguished academic and economist' which led to Rajan's announcement.

"As I had said some time ago, this government did not deserve Dr Rajan. Nevertheless, India is the loser," Chidambaram added.

Earlier today, 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 is currently on leave from the Chicago Booth School of Business where he holds the post of Distinguished Service Professor of Finance.

"The approaching end of my three-year term and of my leave at the University of Chicago was, therefore, a good time to reflect on how much we had accomplished. I am confident my successor will take us to new heights with your help. I will still be working with you for the next couple of months, but let me thank all of you in the RBI family in advance for your dedicated work and unflinching support. It has been a fantastic journey together!" the statement said.

Bharatiya Janata Party (BJP) leader Subramanian Swamy had last month triggered speculation by asking the Centre to deny Rajan a second term, saying his hawkish policies have ruined the Indian economy.

Swamy had in his letter to Prime Minister Narendra Modi accused Rajan of 'harming the nation's economy' and claimed that the latter was acting more as a disrupter of the Indian economy than the person, who wants the Indian economy to improve.