Jan Dhan does not really work as advertised, there are difficulties in targeting transfers to people, Rajan has said.
The former chief economist of the IMF said ways have to be found to give relief to people and companies affected by COVID and the ensuing nationwide lockdown.
Raghuram Rajan, former RBI Governor and now a professor of finance at Chicago Booth School, in a note on LinkedIn, lucidly explains what monetisation of deficit is all about.
The video conference with Raghuram Rajan is part of former Congress President Rahul Gandhi first of a series of dialogues with experts on economy and health.
The Twitter handle of the Congress party said the interaction will be streamed on their social media platforms at 9 am on April 30.
Rajan's comments come in the wake allegations that Tabligh-e-Jamat members violated social distancing guidelines and ignored all instructions by organising a massive gathering last month at their centre in Nizamuddin area of Delhi.
Georgieva said that even before the spread of COVID-19 and the dramatic health, economic and financial disruptions it has brought, International Monetary Fund (IMF) members confronted a rapidly evolving world and complex policy issues.
In a blog post, Rajan has emphasised on prioritising spending on the poor that may help them get through the crisis days ahead.
Rajan, who completed his three-year term at the RBI in 2016, asserted that he has been saying for a long time now that there is a need to clean up the financial sector quickly and in a resolute way so that the country can move forward.
On being asked about the spread of the coronavirus globally and its impact, he said there will certainly be some legacy issues in terms of business rethinking in the global supply chain.
And 'the history graduate', as Das was parodied in his initial days, did not disappoint as the 25th governor of the central bank. He completed one year at the helm on December 12.
Raghuram Rajan also urged India to join free trade agreements judiciously in order to boost competition and improve domestic efficiency.
Rajan, who was Governor of the Reserve Bank of India (RBI) from September 5, 2013 to September 2016, said during his term a clean up of the banking sector that was "clogging" with bad loans had begun and the job remains unfinished.
The Indian government has the required political strength and power to undertake reforms, Rajan noted.
The Nobel laureate and the former RBI governor suggest putting more money in the hands of consumers, letting the rupee slide to foster exports growth and privatizing banks and upskilling government as solutions for the economic slowdown.
Instead of engaging in a futile blame game, the union finance ministry has to address the deep rooted malaise afflicting the financial sector
He pointed out that the fiscal deficit of the country 'conceals' a lot and might push down Asia's third-largest economy.
Rajan, who is currently a professor of finance at University of Chicago, said constant criticism allows period course correction to policy.
In an essay released on his blog, Rajan says that public criticism gives government bureaucrats the room to speak truth to their political masters.
These bigwigs who made a mark in the business world have all attended one of the IITs at some point.
Rajan said that he can't predict another big financial crash but if it comes, it will be from different sources.
Why do you think India has never gone for these instruments in a significant way?
The IMF role fell vacant after current MD Christine Lagarde announced her resignation last week after she was nominated by the European Council as president of the European Central Bank.
According to Rajan, government-imposed credit targets are often achieved by abandoning appropriate due diligence, creating the environment for future NPAs.
The outgoing Deputy Governor warned that public sector borrowing is close to the levels seen during the ‘taper tantrum’