Centre to decide on Dr. Rajan's second term in the month of August

Even as maverick BJP politician and now member of Rajya Sabha, Dr. Subramaniam Swamy re-iterates that the current governor of country's apex bank be removed from his post immediately, the government seems to be in no hurry to take its decision on critical re-appointment of the current governor. According to certain media reports the government wants to take the final decision in the month of August, just a month before his term ends in the month of September.

Nation has all its eyes set on the outcome of the re-appointment of the governor as it will also reflect what Prime Minister thinks of the current governor.If past two years were to be analysed, Prime Minister Narendra Modi has leveraged good work of UPA to great extent for example the way Adhar is used for various government schemes and MNREGA scheme.Just because Dr. Rajan was appointed during UPA II regime, will not deter Prime Minister from offering him a second term as RBI chief. Apparently appointment of the current governor Dr. Rajan is perceived to be one of the better jobs done by UPA during their tenure.

Corporate India so far have strongly supported Dr. Rajan's candidacy for the second terms with Adi Godrej stating "He was voted as the best Central Bank Governor in the world by one of the magazines.” This year in the month of January Dr. Rajan was awarded the Central Banker of the Year award by financial Times Group's 'The Banker'.

Globally, various rating agencies have cautioned on market reaction for Indian markets and currency fluctuation in  Indian National rupee (INR) if Dr. Rajan resigns.