Was Rajan offered a 'second term' in the first place: Swamy

BJP leader Subramanian Swamy, who has been one of the chief critics of Raghuram Rajan, on Saturday welcomed the latter decision to leave his post as the Reserve Bank of India (RBI) Governor on the completion of his term this year, saying he was not even getting a second term in the first place.

Swamy told ANI that Rajan made this decision in order to save his self respect.

"Was he getting a second term in the first place? How do we know that he was getting a second term? I have no information that he was getting a second term. So if he says he wants to go and wants to save his self respect, I have no problem. Let them pretend that he is giving up and going but as long as he goes, it's good," Swamy said.

Swamy has been one of Rajan's chief critics in recent months and wrote to Prime Minister Narendra Modi in May asking for the dismissal of the Reserve Bank of India governor.

The BJP leader further said that there are many decisions, taken by Rajan, which need to be investigated by the CBI.

Meanwhile, Finance Minister Arun Jaitley asserted that Centre respects Rajan's decision and also appreciated the 'good work' done by him, adding that his successor would be announced 'shortly'.

"Dr. Raghuram Rajan has announced his intention to go back to academics at the end of his current assignment. The Government appreciates the good work done by him and respects his decision. A decision on his successor would be announced shortly," Jaitley said on his Facebook page.

However, former home minister P. Chidamabaram stated 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.

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.