'Rajan's exit as RBI Governor won't affect Indian economy'

Raghuram-Rajan-Reuters Reserve Bank of India Governor Raghuram Rajan | Reuters

World Bank chief Jim Yong Kim here on Thursday said that Reserve Bank of India Governor Raghuram Rajan's decision to not take a second term at the bank will not affect the Indian economy.

"I think the (Narendra) Modi government has made it clear that they will continue with the important principle of having an independent central bank. There are many things that they (Indian government) have said that confirms in my opinion, that it is not about a single person," he said on the sidelines of the press briefing about his India visit.

"It's about certain principles, practices that they would adhere to. I don't expect there will be a major shift because the principles of an independent central bank will continue."

Kim appreciated Rajan's work saying that he is well respected and has done a great job.

"I don't know what the whole story is. I understand that he is going to be back to academia at some point in time. He is an extremely respected and productive scholar in addition to being a great central bank governor," he said.

Kim's visit included meetings with Prime Minister Narendra Modi and Finance Minister Arun Jaitley.

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Topics : #Raghuram Rajan | #RBI

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