Dr. Raghuram Rajan has been appointed as the new RBI Governor who took charge on 4th September 2013 as the 23rd Governor of Reserve Bank of India. He is known as a pioneer faculty member at Booth School, Chicago. He served as Chief Economist at IMF(International Monetary Fund) and Chief Economic Advisor, Ministry of Finance, Government of India before assuming the office as Governor of RBI.
What is his tenure of office at RBI ?
Dr. Raghuram Rajan will hold the office as the Governor of the RBI from 4th September 2013 till 4th September 2016.
What are Raghuram Rajan’s previous accomplishments ?
Dr. Raghuram Rajan completed his bachelor’s degree in Electrical Engineering from IIT, Delhi which is counted amongst the top institutions of the country. Thereafter, he opted for IIM, Ahmedabad from where he earned a degree in management before proceeding further for a doctorate at the Massachusetts Institute of Technology, Boston.
He has also served as the visiting faculty at some of the most finest b-schools of the world like Stockholm school of Economics, Northwestern university and the Massachusetts Institute of Technology.
He has also Won the prestigious Fischer Black prize awarded by the American Finance Association for his stupendous contribution in the field of practical finance in the year 2003.
He is the author of the famous book Fault Lines- How hidden fractures still threaten the world economy, where he argued about the bottlenecks in the economy which possess the tremendous capability to devastate any country.
He is popularly known for his prediction about the global financial crisis in one of his technical papers named Has Financial Development Made the World riskier?
What are steps announced by Raghu Ram Rajan soon after he assumed office ?
Soon after Raghuram Rajan assumed office, he announced a numbers of measures that are expected to give a push to the economy.
1. New Bank License – Dr. Rajan gave indication of announcement of new bank licences in and around Jan 2014.
2. Overseas borrowing limit – RBI increased overseas borrowing limit for banks from 50% to 100% of the unimpaired Tier I capital , and swap the same with RBI , at 100 basis points lower than the current market rate.
3. Inflation indexed savings certificate – RBI will soon issue Inflation linked savings certificate to protect savings of households by Nov 2013.
What are the challenges faced by him as RBI Governor ?
Few challenges are as follows :
1. Arrest the fall of sliding rupee
2. Give a push to the growth rate of economy
3. Regain the confidence of Investors