Decision on Raghuram Rajan successor at RBI soon: Jaitley

New Delhi: Finance minister Arun Jaitley on Saturday said the decision to appoint a successor to Reserve Bank of India’s governor Raghuram Rajan would be announced shortly.

“Dr. Raghuram Rajan has announced his intention to go back to academics at the end of his current assignment. The Government appreciates the good work done by him and respects his decision. A decision on his successor would be announced shortly,” said Jaitley in a Facebook post.

The prime minister’s office had no immediate comment on Rajan not seeking a second term, officials said on Saturday.

“Dr. Rajan is a person of very high caliber, who has built ably on the reputation of our Central Bank and given it a very large measure of credibility,” said State Bank of India chairperson Arundhati Bhattacharya.

G.R. Gopinath, founder of India’s first low-fare airline Air Deccan said Rajan was the best thing that could happen to India. “A man of his intellectual stature, who had the courage to say and do the right thing was the need of the hour for India’s economic stability and well being and also his continuance would have enhanced Modi’s credibility with international investors,” Gopinath said.

RPG Enterprises chairman Harsh Goenka said Rajan leaving is a loss to the nation. “Globally acknowledged. Inflation warrior. Economic guru. Independent mind. Bank surgeon. RaghuramRajan leaving is a loss to the nation,” Goenka wrote on his Twitter account.

Chanda Kochhar, MD and CEO, ICICI Bank said over the last three years, the RBI played a major role in steering the Indian economy through a period of volatility across the world. “Today, India is the world’s fastest growing large economy with stable macroeconomic indicators. The country has a very strong economic policy framework and the Government is focused on its growth and reform agenda. India will continue to remain on a very robust growth path.

“Dr. Rajan’s decision to return to academia is a personal one which we must respect. I wish Dr. Rajan all the very best for the years ahead,” said Kochhar.

Mittu Chandilya, former managing director and chief executive officer at AirAsia India, said Rajan leaving the RBI is definitely a loss to nation as he brought independent intellect and best economic standards and forward thinking. Chandilya said longer tenure for policy makers brings much needed continuity as the nation rolls ahead with progress, reform and economic growth.

“Rajan leaving the RBI at a time when a tumultuous global economy poses several risks to India along with the banks grappling with an unprecedented challenge of mounting non-performing assets is quite unfortunate,” said D.S. Rawat, secretary general, ASSOCHAM.

Rawat expressed hope that Rajan will be persuaded to reconsider his decision, though the way the public discourse and narrative on the entire issue took shape, could have been avoided.

Reuters contributed to this story.