Time to say goodbye: RBI Governor Raghuram Rajan says no to second term

Reserve Bank of India (RBI) governor Raghuram Rajan will return to his teaching job at the University of Chicago after his term with the central bank ends in September.

In a message to RBI staff on Saturday which was released on the central bank's website Rajan said he will not continue in his current job after September 4. "I am an academic and I have always made it clear that my ultimate home is in the realm of ideas," Rajan said while reflecting on his accomplishments in the last three years.

"Inflation is in the target zone, but the monetary policy committee that will set policy has yet to be formed. Moreover, the bank clean up initiated under the Asset Quality Review, having already brought more credibility to bank balance sheets, is still ongoing. International developments also pose some risks in the short term."

"While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016. I will, of course, always be available to serve my country when needed," Rajan said.

He expressed confidence that government reforms and work at the RBI and other regulators will lead to greater job growth and prosperity for Indians in the years to come.

"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!," he said in the letter.

Image credit: Indiatimes