Free Press Journal

BJP dismisses ‘speculation’ on removing RBI head


Arun Jaitley

“Talk RBI head to be replaced if BJP in power speculative”: Jaitley

New Delhi: Bharatiya Janata Party today dismissed as “speculation” reports that it might replace Reserve Bank of India Governor Raghuram Rajan if the party is voted to power.

“We do not take stand on individuals. As a party has not given any indications, on who remains and who goes out. I think these are speculations in the media. I can only assure you that if we are voted into power we will be a responsible government taking responsible decisions,” party leader Arun Jaitley told reporters at the BJP headquarters.

He was responding to a question about media reports that BJP might replace the heads of different regulators including the RBI governor if it is elected to power.

While RBI is the banking regulator, Securities and Exchange Board of India regulates the stock market, Insurance Regulatory and Development Authority regulates the insurance companies and Pension Fund Regulatory and Development Authority is the pension fund regulator. Rajan, a University of Chicago economist, took over as RBI chief on Sep 4 for a term of three years.

A section of the media had reported that Rajan may come under intense political pressure to retreat from his hawkish stance on inflation if BJP’s Narendra Modi becomes prime minister.

Asked if Finance Minister P. Chidambaram thinks the worst was over and economy was getting back to its growth momentum, Jaitley said: “I don’t want to use any harsh language, but the finance minister had inherited 8.5% growth.

He is going to leave behind a 4.6% growth, so I hope that he is right. We won’t do any worse than the condition in which he is leaving us. I am sure the next government will take the country on a recovery track.”