Raghuram Rajan's term at RBI 'mischievously interrupted': Chidambaram
P Chidambaram said D Subbarao's term was extended despite tension between the UPA govt and RBI. Presently, there is no tension between the two but Raghuram Rajan is not given an extension
New Delhi - Former Union Finance Minister P Chidambaram on Thursday hinted that the outgoing Reserve Bank of India (RBI) Governor Raghuram Rajan not seeking another term was due to the "mischievous interruption" by the government.
"As per the convention, the extension of the RBI Governor's term is only a formality. But it has been mischievously interrupted," Chidambaram said.
He was speaking at the book launch of 'Who Moved My Interest Rates?', written by former RBI Governor D. Subbarao.
Chidambaram said Subbarao's term as the RBI Governor was extended despite tension between them, as stated in the book.
"But now there is no tension between the government (NDA) and the RBI Governor (Rajan) but his term was not extended," he added.
The recent trend on consumer inflation is indeed worrying.
Rajan should introspect on whether staying on after September will do more damage or less to the institution he heads
D Subbarao said the professional competence of RBI is best in the world