Rajan meets Modi amid speculation on second term, says sources

Reserve Bank Governor Raghuram Rajan met Prime Minister Narendra  Modi this evening, said sources, amid speculation over whether the government will give him a second term.

Rajan’s term as the RBI Governor ends in September.

Earlier today, Rajan had met finance minister Arun Jaitley. Rajan had declined to comment on the meeting, which is believed to have been on the macro-economic situation ahead of next month’s monetary policy. The announcement is scheduled for June 7 and will be made amid clamour for further rate cuts by RBI.

Rajan had recently faced repeated attacks by BJP leader Subramanian Swamy, who accused the RBI Governor of wilfully wrecking the economy and alleging that he is “not fully Indian” since he has been renewing his US Green Card.

Swamy had also written to the Prime Minister earlier this month, recommending that he “consider terminating the appointment”.

But a groundswell of support is growing for Rajan.

Referring to Dr Swamy’s attacks, the petitioner, Rajesh Palaria, has made a made a strong pitch for Mr Rajan’s reappointment, saying, “He has been doing a great job by balancing and maneuvering Indian economy through the populism which endangers it… He is very crucial for the India Growth Story.”

The BJP has not officially made its position clear following Swamy’s comments.

But BJP spokesperson Gopal Aggarwal had earlier questioned how effective RBI’s moves had been.

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