Raghuram Rajan says no to second term as RBI governor

Updated: Monday, June 20, 2016, 13:38 [IST]

Mumbai, June 18: Reserve Bank of India Governor Raghuram Rajan has decided not to continue in the role for a second term and will return to academia once his tenure ends on September 4, 2016.

In a note to the central bank staffers which the RBI put on its web site, Rajan said: "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." [Read the entire RBI note here]

Rajan also said that he is confident that his successor would take the country to new heights with the latter's help. He also thanked the "RBI family" for the support. [Can not fault Raghuram Rajan for various wrongs: Shourie]

Fifty-three-year-old Rajan, the former chief economist of the IMF, joined the RBI as its governor in 2013 and was handed a three year term.

As an outspoken RBI governor, Rajan didn't quite have a smooth first term as the political camp was divided over him. While BJP leader Subramanian Swamy often sought his ouster, former minister Arun Shourie backed him. Even Prime Minister Narendra Modi had to chip in once saying Rajan's reappointment shouldn't be an issue of the media's interest. [Swamy fires another salvo at Rajan]