Rajan to reach Mint Road 2 weeks before taking charge

Raghuram Rajan is set to start working on Mint Road at least two weeks before formally taking charge as the 23rd governor of Reserve Bank of India on September 5.

Rajan will be closely working with the RBI governor and the four deputy governors to gain familiarity with the central bank’s stance on various issues.

This is the first time an RBI governor will be hand-holding his successor for such a long period.

Rajan will have to draft the mid-quarter policy review, slated for September 18, within two weeks of taking charge.

In addition, providing a clear direction on the present policy stance will also be an area of Rajan’s focus, as the central bank had turned hawkish after reducing the policy rate thrice in 2013 by 25 bps each to support faltering growth.

RBI however, started squeezing liquidity which is impacting long-term interest rate amid a sharply declining rupee.

On Wednesday, Rajan spent the entire day in the central bank and attended the meeting of sub-committee of Financial Stability and Development Council, in which he is a member, and also interacted with RBI brass, before heading for the customary dinner on the eve of the central board meeting of RBI hosted by the governor at his Malabar Hill residence in South Mumbai.

Image: Raghuram Rajan