Raghuram Rajan Appointed As Next RBI Governor

The current Chief Economic Adviser inside the Finance Ministry, Raghuram Govind Rajan, has been appointed since the new (23rd) Governor of India’s Central bank- Reserve Bank asia (RBI). He succeeds D. Subbarao in September 2013 and may remain in office for 3 years (which can be extended later by 24 months).

• An alumni of IIM Ahmedabad , IIT Delhi, MIT (US)
• former Chief Economist from the International Monetary Fund (IMF)
• Second youngest Governor of RBI (at Fifty years). The youngest was Pm Manmohan Singh appointed in 1982 (within the age of 49 years)
• credited to own correctly predicted the 2008 global financial trouble in the 2005 paper “Has Financial Development made the earth riskier”
• Chairman of the high-level committee on Financial Sector Reforms (commissioned by Planning Commission)
• Chairman of Expert Committee to draw in criteria to determine backwardness of States

CHALLENGES :

High Consumer price inflation- leading to tight Monetary policy Stance of RBI thus lowering growth rates

Economic Growth slowdown - RBI’s growth projections for 2013-14 dipped to five.5%
Sharp depreciation of the rupee (10.76% loss in the US dollar since January 2013 ; worst performer of major currencies)

Widening current account deficit (CAD) - touched 4.Eight percent of GDP accentuated by increasing gold, oil and coal imports

Read more>>