He came in at a time when the rupee, in a free fall, had depreciated to 68.80. A year on, since taking charge as the Reserve Bank governor on September 4, Rajan has managed to stabilise the currency at 60-61and stayed focussed on his inflation targeting approach. Although Rajan, in his words is "not a James Bond," his feat is no less than that of 007 for which he has found many admirers. Here are some voices who admit the governor's accomplishment deserve a good rating on a scale of 1-10.
Sajjid Chinoy, Chief India Economist, JP Morgan: A year ago, India was a founding member of the Fragile Five Club and today, we are becoming the darling among emerging markets, Chinoy said in an article published in Business Standard. Governor Rajan and the RBI have had a crucial role to play in facilitating that transition.
Apart from that, Rajan's focus has also been on resolving some of the issues on the NPA side; governance structure of PSU banks, focus on financial inclusion, broader development of the financial market, dependence now on term auction rather than just overnight repo, LAF window ability. I think the macro stability that a lot of investors ascribe to India because of the government, but also because of these steps that the RBI has taken. To a good extent, it is because of Rajan's vision.
Duvvuri Subbarao, former governor, RBI: After Rajan completed 10 months, Subbarao said his successor Rajan deserves an "A+" grade for his performance. He in fact added, if there is anything beyond [A+], I would give it to him. He's been able to [apply] his scholarship of finance to practical situations. He's doing very well. "There's no doubt from his decisions and actions over the last 10 months he is doing what is right," he further said.
Posted By: Devika Ghosh
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