Swamy writes to Modi, demands RBI governor Rajan's ouster
Senior BJP leader Subramanian Swamy wrote to Prime Minister Narendra Modi on Tuesday seeking the 'immediate termination' of Reserve Bank of India (RBI) Governor Raghuram Rajan.
"The RBI governor is wilfully and deliberately wrecking the Indian economy, he is mentally not fully Indian, the reason why I recommend this is that I am shocked by the wilful and apparently deliberate attempt by Dr Rajan to wreck the Indian economy," said Swamy in his letter.
Swamy added, "Moreover he is in this country on a Green Card provided by the US government and therefore mentally not fully Indian. Otherwise why would he renew his Green Card as RBI governor by making the mandatory annual visit to the US to keep the Green Card current?"
Last week, Swamy had blamed Rajan for the rising inflation and increasing unemployment, and had suggested that he should be sent back to Chicago. "In my opinion, Rajan is not apt for our country. He raised the interest rates on the pretext of checking inflation. But it has resulted in the collapse of industry and thus unemployment has increased. He should be sacked and sent back to Chicago, the earlier the better," Swamy had said.
I cannot see why someone appointed by the UPA Government who is apparently working against Indian economic interests should be kept in this post when we have so many nationalist-minded experts available in this country for the RBI governorship
Rajan was a professor of finance at the University of Chicago from 1991 to 2013, when he went on public service leave. In 2013, he took charge as RBI Governor; his term ends in September this year. Indicating his interest in a second term, Rajan said last week he has enjoyed every moment of the job, but there is "more to do". Swamy's remarks came a day after Rajan said foreign banks have stopped opening branches in India as they have to put aside a lot more capital due to India's 'higher risk' credit rating. He had also questioned the monetary policy actions of central banks in developed countries in trying to boost demand and said that such moves could actually be having little impact along the lines intended.
"I cannot see why someone appointed by the UPA Government who is apparently working against Indian economic interests should be kept in this post when we have so many nationalist-minded experts available in this country for the RBI governorship," said Swamy.
Meanwhile, amid speculation about a possible second term for 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 a discussion and each other views is considered between us," he said. To a question on whether Rajan is getting an extension, Jaitley quipped, "These are not issues which we discuss through the media."