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- 7 things that Raghuram Rajan did as the RBI governor Source: indianexpress.com
- Rajan’s most visible achievement during his term as the RBI governor is reigning in inflation
- His term saw two repo rate increases which totaled to 50 basis points. This helped inflation to drop from 11.5% at its peak to 3.3% in November 2014
- Then came by, five repo rate cuts aggregating to 150 basis points. He left rates unchanged at 6.5% at Tuesday’s meeting
- Rajan initiated Swachh bank exercise – clean-up of the bad loans in the banking sector, particularly public sector banks
- He made way for the banking structure reforms by allowing entry of small finance banks & payments banks
- As he leaves, he could be the last RBI governor to have decided on monetary policy. Henceforth, policy decisions will be vote-driven rather than being directed only by the governor
- RBI will set a formal inflation target with a casting vote for the governor in the forthcoming policy reviews
- Raghuram Rajan’s three-year term as RBI governor ends on September 4, 2016. Earlier, he was a chief economist of the International Monetary Fund Conclusion Source: blogs.wsj.com
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