Rajan’s current three-year term as RBI chief is ending this September but speculation is already rife if he can bag another term at RBI. The government has so far remained tight-lipped, and some sections of the ruling BJP seem vehemently against it.
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.
Earlier this week, The Quint asked its readers if they agreed with Swamy. 69 percent said no.
Inflation, Rupee Under Control But NPAs Spiral
Rajan took over as the RBI governor at a time when India’s inflation was above 10 percent and the Indian rupee was staring at a crisis. Apart from hiking interest rates to tame inflationary expectations, Rajan also took a number of steps to step the rapid depreciation of rupee – opening a swap window for deposits from NRIs, being one of them. Come 2016, rupee is stable and inflation has reduced to sub-6 percent levels.
However, one big problem which the RBI is yet to tackle meaningfully is the acute rise in bad loans in the banking sector, which is threatening to spill over and impact other sectors.
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