Because of Rajan's policies, the banking system has mustered enough courage to disclose their toxic assets
RBI Governor said this when asked for his views on Brexit at the Chicago Booth School, London
Said move to increase the interest rates, so as to cut down inflation and stabilise the economy, has backfired and badly affected the nation
RBI Governor was responding to a question in London on the politics surrounding extension of his term
He also said that recovery of Indian economy should accelerate with a good monsoon
Rajan also rejected calls for any immediate privatisation of public sector banks
Rajan also said India was in the midst of a slow recovery though there were signs of faster growth, with possible acceleration coming from a good monsoon
Said policy formulation in an emerging market like India is a fairly basic economics task as such
He said greater demand on banks to hold capital in the post-financial crisis scenario has come at a cost
While policymakers and economists seem wary of making long-term projections, given the uncertain global economic scenario, politicians in general are never short of breath or braggadocio. So at an event in Delhi, when a member of the audience requested Reserve Bank of India Governor Raghuram Rajan to predict the exchange rate and the inflation rate five years from now, he seemed to dither for a moment. As the packed hall broke into laughter, someone in the audience quipped, "Only (Prime Minister Narendra) Modi can answer that."
He said that the greater demand on banks to hold capital in the post-financial crisis scenario has come at a cost
Says many emerging markets have already been taking steps to help their neighbours
Says India can follow the same rules in about a decade
He questioned if global monetary policy was increasingly becoming part of the problem, not part of the solution
However, the government has not taken a final call and is yet to inform Rajan
What differentiates Rajan from his predecessors is his proactive steps in anticipating a problem and coming up with out-of-the-box solutions.
He also said that a new mechanism is being put in place for out-of-court settlement of bad loan-related disputes
RBI governor says entrepreneurship in the country should not be killed
Says those who can pay back student loans should, those who can't should be forgiven
Asserts free market isn't fair, even well-run economies seem to be favouring those who already have plenty