Swamy embarrasses govt., says Rajan not fit as RBI Governor

Days after being nominated to the Rajya Sabha, Bharatiya Janata Party (BJP) leader Subramanian Swamy on Thursday embarrassed the government by training guns at RBI Governor Raghuram Rajan and said that he should be removed as he is not fit for the nation.

"In my opinion, the RBI Governor is not apt for our country. His move to increase the interest rates, so as to cut down inflation and stabilize the economy, has backfired and has badly affected the nation," Swamy told reporters.

"All the industries have collapsed and as a result unemployment has increased. In my opinion, he should be removed as early as possible," he added.

Delivering a lecture in Cambridge University, London, the RBI Governor yesterday said that foreign banks have stopped opening branches in India as they need to set aside a lot more capital due to the country's 'higher risk' credit rating and they feel it is 'not worth' doing so.

In a lecture titled 'Why Banks?' as part of the Marshall Lecture 2015-16 series at Cambridge University, Rajan said that greater demand on banks to hold capital in the post financial crisis scenario has come at a cost.

The Parliament on Wednesday passed the Finance Bill after an intense debate in the Rajya Sabha with the government making 21 amendments.

The Lok Sabha passed the Finance Bill and Appropriation Bill last week and it was returned by the Rajya Sabha on Wednesday.