Industry body Assocham has said current Reserve Bank of India chief Raghuram Rajan’s reappointment should be left to the prime minister to decide, and that he has an “impeccable track record”, reported NDTV. It’s statement comes amid heavy criticism from Bharatiya Janata Party leader Subramanian Swamy, who has repeatedly called for Rajan to be sacked or not reappointed in September. However, Prime Minister Narendra Modi recently told The Wall Street Journal that the matter is an “administrative subject”. He broke his silence on the issue and said that it was “not an issue of interest” to the media.
Assocham also said that “the kind of media statements being issued about Rajan by senior politicians do not augur well for the country's financial system, which is passing through a challenging time because of unprecedented levels of stressed assets in the banks”, and that Rajan had brought in much respect for the Indian financial system during his term as RBI Governor. It “urged restraint” from politicians besides Modi.
Recently, Finance Minister Arun Jaitley had also said that the apex bank was in continuous dialogue with the Centre, and that he did not approve of “personal comments” against anyone including the RBI Governor.
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