RBI’s Raghuram Rajan keeps mum about second term but reveals his backup plan

Three months are left for Reserve Bank of India (RBI) Governor Raghuram Rajan’s tenure to get over and speculations are rife that his term may be extended.

Rajan, whose term ends on September 4, says he should be asked about it in the first place.

"That question, I can't answer. First I have to be asked, 'Do you want to continue?' Then, I can answer," said Rajan.

Rajan’s policies have been lauded by various economists and it may get difficult for PM Narendra Modi-led Indian government to let go of him.

But, what if his term is not extended?

"I love teaching. I will go back to academia once I am done with my work here," said Rajan, while attending the convocation of Shiv Nadar University.

Recently, CLSA’s Christopher Wood had said if Rajan was not given a second term, it would be a risk to the Indian bond and currency market.

"He (Prime Minister Narendra Modi) must recognise the constructive role played by RBI under Rajan in both imposing a tighter NPL (non-performing loan) system on banks, carrying out a stress test on banks and putting pressure on them to go after defaulting creditors," Wood had written.

Rajan was a professor of finance at the University of Chicago Booth School of Business and chief economist at the International Monetary Fund.

(Image: Indiatimes)