RBI and the central government share 'mature relationship', says Jaitley

Amid speculation about a possible second term for Reserve Bank Governor Raghuram Rajan, Finance Minister Arun Jaitley on Monday declined to be drawn into the matter, but said there is a 'mature relationship' between the central bank and the government.

PTI May 16, 2016 14:42:57 IST
RBI and the central government share 'mature relationship', says Jaitley

New Delhi: Amid speculation about a possible second term for Reserve Bank Governor Raghuram Rajan, Finance Minister Arun Jaitley on Monday declined to be drawn into the matter, but said there is a "mature relationship" between the central bank and the government.

"As far as the Finance Ministry and RBI are concerned, there is an institutional relationship between the two. It is a very mature relationship. We at the highest level at the two institutions have discussion and each other views is considered between us," he said.

He was speaking at an event organised by Indian Women's Press Corps.

RBI and the central government share mature relationship says Jaitley

A file photo of Arun Jaitley and Raghuram Rajan. PTI

To a question whether Rajan is getting an extension, he quipped "these are not issues which we discuss through the media."

Rajan's current three-year term as RBI chief is ending this September.

Indicating his interest in a second term, Rajan on 13 May had said he has enjoyed every moment of the job, but there is "more to do", despite calls from some sections of the ruling BJP against any extension for him.

Senior BJP leader Subramanian Swamy last week had suggested that Rajan should be removed and accused him of being responsible for "unemployment and collapse" of industrial activity.

"In my opinion, the RBI Governor is not appropriate for the country. I don't want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country... The sooner he is sent back to Chicago, the better it would be," Swamy had told reporters outside Parliament.

Rajan, who had earlier also served as the Chief Economist of IMF and is known as a key commentator on financial issues globally, is the on-leave Professor of Finance at University of Chicago's Booth School of Business.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Biased Delhi Police chargesheet against CAA-protestors shows how institutions become victims of political duress
Politics

Biased Delhi Police chargesheet against CAA-protestors shows how institutions become victims of political duress

The most jarringly missing name in the 17,000-page charge sheet is that of Delhi BJP leader and former AAP MLA Kapil Mishra, the ‘instigator-in-chief’ in the riots.

Supreme Court extends relief on NPAs after govt says interest issue being considered at 'highest level'
India

Supreme Court extends relief on NPAs after govt says interest issue being considered at 'highest level'

The Centre told the court an expert panel has been set up to look into the interest being charged by banks on instalments deferred during the moratorium

Amid COVID-19 crisis, off-budget borrowings to fund ambitious welfare schemes, poor GST support from Centre put state finances in peril
Business

Amid COVID-19 crisis, off-budget borrowings to fund ambitious welfare schemes, poor GST support from Centre put state finances in peril

Sops like farm loan waivers, cushioning power sector losses and assorted income support schemes have started haunting state exchequers as many punched way above their financial might before the devastating strike of COVID-19.