SBI Chief Arundhati frontrunner to replace Rajan as RBI governor

With Reserve Bank of India (RBI) Governor Raghuram Rajan unwilling to head the central bank for the second term, senior government officials say that State Bank of India (SBI) Chairperson Arundhati Bhattacharya is the frontrunner among the six contenders for the post.The long list to replace Rajan includes RBI Deputy Governor Urjit Patel, former deputy governor Subir Gokarn, economists Rakesh Mohan and Parthasarathi Shome.Chief Economist in the World Bank Kaushik Basu's name is also doing the rounds.On Saturday, Rajan said he will not serve a second term as RBI head, sparking a war of words in which the Congress accused the Bharatiya Janata Party-led Central Government of hounding him out."While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016. I will, of course, always be available to serve my country when needed," Rajan said in a statement.Hours later, Finance Minister Arun Jaitley tweeted that the government appreciated Rajan's "good work" and respected his decision to step down."A decision on his successor would be announced shortly," he said.'INDIA'S LOSS'Former finance minister P Chidambaram, during whose tenure Rajan was made the RBI governor in 2013, launched a scathing attack on the government I am disappointed and profoundly saddened by the decision of Dr Raghuram Rajan to leave the RBI on completion of his term on September 4, 2016, but I hasten to add that I am not surprised at all," Chidambaram said.The former finance minister said the government had invited this development through a "craftily-planned campaign of insinuations, baseless allegations and puerile attacks" on the distinguished academic and economist."As I had said some time ago, this government did not deserve Dr Rajan. Nevertheless, India is the loser," he added.BJP MP Subramanian Swamy, who has been carrying out a vicious attack on Rajan and has even accused him of destroying the economy, welcomed the decision."It (Rajan's decision) is good. The reasons I had given (against Rajan's continuance) were all valid. He has realised he would not get a second term. That's why he has made a statement himself," Swamy said.BANKER WITH CELEBRITY STATUSRajan has a formidable reputation as an internationally renowned economist and is still being hailed across the world for accurately predicting the 2008 global meltdown.No RBI Governor before him has enjoyed a celebrity status like he does. His views on the economy are taken very seriously in the West.Rajan is credited with stabilising the volatile rupee and bringing down inflation. His style is unconventional and he is known to speak his mindThere have been concerns that Rajan's exit, which has been termed as 'Rexit' to give it a play like Brexit and Grexit, could lead to adverse impact on the country's financial markets.The Governor, however, said he is confident that his successor would take the RBI to new heights."I am an academic and I have always made it clear that my ultimate home is in the realm of ideas," he said in his statement.