Opinion in the government is clearly divided on FSRASC's role in the appointment of RBI governor
Rathore hailed Raghuram Rajan's decision not to cut repo rate, saying 'it's a good decision'
Rajan's exit will be a temporary blow, not a permanent one
Rajan, who has been outspoken on various issues, also praised Prime Minister Narendra Modi for ending government's interferences in public sector banks
Rajan's current term is set to end in September and there has been intense speculation about whether he would be given another term
Rajan also said India is capable of much stronger growth and the country can celebrate when it sees strong private investment
In an interview with a news channel, the RBI Governor called the current repo rate of 6.5% 'appropriate'
Interview with RBI Governor
The issue is part of an unfinished agenda, beside moving inflation to a comforting level
He cautioned that people should not go in for licences just because it is a valuable property but must have intention of doing the business
RBI Governor Rajan also said that he was 'personally intrigued by all the letters I am supposed to have written' on the issue
Two petitions voting against RBI Governor's second term exist, but they have garnered very less support
Says Governor must get full operational independence when it comes to pursuing targets on employment, growth and inflation
Rajan concerned that the media reports and the rumours give the impression of it being a personality-driven contest, untrue and unfair on all concerned
Minister of State for Finance Jayant Sinha has quashed rumours of any decision made by the government on the continuation or otherwise of Reserve Bank of India (RBI) Governor Raghuram Rajan. Speaking at an event in New Delhi on Thursday, Sinha said, "The current round of discussions are a creation of the media. The government will take a decision at the right time and I have nothing further to say." The three- year term of the RBI governor comes to end in September this year and there have been several reports on whether he will get a second and final term of another two years. The minister was responding to a question on whether Finance Minister Arun Jaitley and Prime Minister Narendra Modi had taken any position on the same. Adverse reports on Rajan have had a negative impact on the bond and currency markets even as positive reports have buoyed them up. In the past couple of days, the exchange value of the rupee had moved adversely against the dollar and bonds have declined on 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
Senior govt official denies any such discussion took place
Foreign investors have been on edge whether Rajan will be re-appointed by the government for a two-year second term
PM said to be 'proud' of Rajan and negative campaign will not affect his decision; may be offered a second term
Reserve Bank of India's asset quality review of large lenders shows under-reporting