Bengaluru, Jun 11: Government would take its “own course” on giving a second term to Reserve Bank of India Governor Raghuram Rajan and deliberations and discussions in public domain would not decide it, Union Law Minister Sadananda Gowda said today. Gowda also said he is not aware of the reported formation of a selection committee by the government to shortlist candidates for the post of RBI Governor. “I am not aware of why the committee has been formed, and how the selection (of RBI Governor) will be done. I am?really not aware,” he told PTI here. Gowda’s response came when he was asked if setting up of the committee to shortlist candidates for RBI Governor’s post meant that government would not give a second term to Rajan.(Also Read: Raghuram Rajan has the BEST reply on his second term as RBI Governor!) Also Read - Centre Appoints Rajeshwar Rao as RBI Deputy Governor | Read Here
The Union government, as per some media reports, had formed a selection committee headed by Cabinet Secretary P K Sinha for shortlisting candidates for RBI Governorship. The issue of giving a second term to Rajan has generated much debate in public domain after BJP MP Subramanian Swamy launched an attack against him and wrote to Prime Minister Narendra Modi to remove him. Gowda, however, said the government has its ways and means to decide on whether Rajan should be given the second term as the RBI Governor or not. “Deliberations and discussions in public domain will not decide the issue. Also Read - Rs 2000 Notes News: Has Centre Decided to Discontinue Printing of Rs 2000 Notes? This is What Modi Govt Said | Read Here
The government has its own ways and means of how it should process it – whether to continue, not to continue (Rajan). The government will take its own course,” he said. Stepping up his campaign against Rajan, Swamy, in a letter to Modi, had urged him to “terminate” his services “effective immediately” or when his term ends in September because he was “mentally not fully Indian”. In yet another salvo at Rajan, Swamy had yesterday alleged that the former IMF chief economist had planted ‘a time bomb’ in the Indian financial system that will explode in December. Also Read - GDP Numbers Should Alarm us All, Govt Needs to be Frightened Out of Their Complacency: Rajan
Swamy last month had also written yet another letter to Modi, seeking Rajan’s ouster for keeping interest rate high. Asked to comment on whether Rajan’s discontinuance as RBI Governor would affect the Indian market and flow of foreign investments, Gowda said, “There are positive and negative talks, but how this (Rajan issue) has to be done properly, and for that reason they might have decided to take the feedback across the country.