Raghuram Rajan may not seek extension as RBI governor: report

Reserve Bank of India governor Raghuram Rajan is unlikely to continue in the position after his term ends in September, although reports say Prime Minister Narendra Modi wants Rajan to remain as RBI chief.

Rajan, who recently came under a strong attack from the BJP leader Subramanian Swamy who demanded that the governor be sacked, may not also like to continue in the position amid rumors that Subramaniam Swamy could replace Arun Jaitley as the new finance minister.

Reports, meanwhile, said that Prime Minister Narendra Modi had indicated that he would want Rajan to continue, the daily said.

Leading Bengali daily Anandabazar Patrika said Rajan had told the central government that once his term ends, he would return to the United States. Quoting sources close to Rajan, the daily said he had plans to join an American university and pursue research on the Indian economy.

While several other BJP leaders have questioned the logic of Swamy`s outbursts, speculation is that he has had the blessings of party president Amit Shah.

The daily also quoted "informed sources" as saying the prime minister had supported a two-year extension for the governor.

Finance minister Arun Jaitley has also been quoted as telling the prime minister that if the governor is sacked it would send a wrong message around the world.

Rajan, despite his tight money policy, has wider support from industrialists and think tanks around the world who believe that he is one of the finest economists. Rajan, they point out, had stuck to the path of reforms and proved that his policies are aimed at ensuring an even spread of economic growth.