Indianmandarins has learnt that Prime Minister Narendra Damodardas Modi feels "very proud" of RBI governor Raghuram Rajan. Indeed, the governor frequently visits New Delhi to meet Modi, but these meetings are mostly wrapped up in secrecy because of their 'sensitive' nature. It is pointed out that the equation that developed between Modi and Rajan early last year when Modi called Rajan the "best teacher" for explaining complex economic issues to him, has been continuously growing. And this has set a whole lot of incompetent scoundrels floating stories and hatching conspiracies.
To prove the point of growing relationship between the PM and the governor, the recent case of the prime minister backing Rajan in the monetary policy panel's composition and blocking moves to strip the RBI's authority to regulate government bonds and manage public debt is cited. It's pointed out that the PMO has also directed the finance ministry to pursue only those policies where there was agreement with the central bank.
Officials revealed that junior finance minister Jayant Sinha, a college friend of Rajan and one of the more influential economic voices in the Modi government, has been the go between Modi and Rajan. He has also been instrumental in ensuring Rajan's victory in the preparation of the draft legislation for the Monetary Policy Committee. The original draft legislation of the finance ministry would have allowed it to appoint more than half of the panel's member; it was amended to split it evenly between government and RBI nominees. The amended legislation ensures that Rajan gets the casting vote in the case of a 3-3 split.
A new monetary policy panel will be formed later this year to set interest rates, something Rajan favoured to make the RBI more independent and introduce transparency to the process.
Indianmandarins has learnt that the PM has pinned his hopes on Rajan and recently-appointed BBB chief Vinod Rai for establishing a robust and clean financial and banking system. Therefore, he has no desire to rock the boat that he has so assiduously built to sail off through the turbulent seas of global economy.
PM feels 'proud' of Rajan
By IndianMandarins - 2016-06-02 13:40:12
Indianmandarins has learnt that Prime Minister Narendra Damodardas Modi feels "very proud" of RBI governor Raghuram Rajan. Indeed, the governor frequently visits New Delhi to meet Modi, but these meetings are mostly wrapped up in secrecy because of their 'sensitive' nature. It is pointed out that the equation that developed between Modi and Rajan early last year when Modi called Rajan the "best teacher" for explaining complex economic issues to him, has been continuously growing. And this has set a whole lot of incompetent scoundrels floating stories and hatching conspiracies.
To prove the point of growing relationship between the PM and the governor, the recent case of the prime minister backing Rajan in the monetary policy panel's composition and blocking moves to strip the RBI's authority to regulate government bonds and manage public debt is cited. It's pointed out that the PMO has also directed the finance ministry to pursue only those policies where there was agreement with the central bank.
Officials revealed that junior finance minister Jayant Sinha, a college friend of Rajan and one of the more influential economic voices in the Modi government, has been the go between Modi and Rajan. He has also been instrumental in ensuring Rajan's victory in the preparation of the draft legislation for the Monetary Policy Committee. The original draft legislation of the finance ministry would have allowed it to appoint more than half of the panel's member; it was amended to split it evenly between government and RBI nominees. The amended legislation ensures that Rajan gets the casting vote in the case of a 3-3 split.
A new monetary policy panel will be formed later this year to set interest rates, something Rajan favoured to make the RBI more independent and introduce transparency to the process.
Indianmandarins has learnt that the PM has pinned his hopes on Rajan and recently-appointed BBB chief Vinod Rai for establishing a robust and clean financial and banking system. Therefore, he has no desire to rock the boat that he has so assiduously built to sail off through the turbulent seas of global economy.
