Modi government wouldn’t have extended Raghuram Rajan’s term

Even if RBI’s outgoing Governor Raghuram Rajan had not opted out for second term, the Indian government would, anyway, not have extended his term.

This is because RBI’s new Governor Urjit Patel was already PM Narendra Modi’s first choice.

Senior government officials told ET it was Modi who chose Patel and the selection was to be made between Patel and former Chief Economic Adviser Arvind Subramanian, these officials said.

Rajan's term ends on September 4.

"The overlap period between the exit of the previous governor and new appointee should not be more than 15 days so as to not interfere in the working of the central bank," a senior official told ET.

Patel made it to the top post as his blue chip academic credentials and other degrees were impressive.

"The PM wanted a steady hand, someone not given to flamboyance, and someone who will impress domestic and global financial elites...Patel fit the bill," another senior official told ET.