India

Raghuram Rajan: Governor of RBI

Here are four reasons which justify why Rajan is the most famous banker in India.

By Tejal Mistry 02nd Feb, 2016 04:42 pm

Raghuram Rajan is the current and 23^rd Governor of the Reserve Bank of India. Here are four reasons which justify why Rajan is the most famous banker in India.

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Inflation

Rajan is known for his prime focus–inflation. His biggest achievement in curbing inflation has been that he successfully brought down retail inflation to 3.78% in July 2015 from 9.8% in September 2013. Wholesale inflation was also down to a historic level of 4.05% in July 2015 from 6.1% in September 2013.

Adoption of Consumer Price Index

Under Rajan’s tenure, the RBI adopted the consumer price index (CPI) as the key indicator of inflation. CPI measures the level of consumer goods and services purchased by households.

Forex Reserves

India’s forex reserves have increased by 30% in the last two years. Now we have about 380 billion dollars of forex reserves, which is a comfortable level for India to deal with any economic issues.

Banking Reforms

Rajan has successfully introduced two universal banks and eleven payment banks. These are expected to extend the banking services to nearly two-thirds of the population who are still deprived of any banking facilities.