First day, first show........................

Raghuram Rajan takes over: What happened at RBI?

...........Electronic media persons were lined up since 9 am to welcome Rajan. Meanwhile outgoing governor Subbarao entered the building at 10 am and greeted waiting media persons. Sharp at 11 am Raghuram Rajan entered RBI central office in a white Corolla and was greeted at main gate by all four deputy governors -- K C Chakrabarty, Anand Sinha, H R Khan and Urjit Patel. Rajan and four deputy governors walked on portico accompanied by other senior officials..............

Read | Business Standard

Chennai Express Steams into Mint St

M&M boss Anand Mahindra tweeted: “He hails from Tamil Nadu. If he’s a blockbuster hit, we’ll call him the Chennai Express.” Mahindra had a point. The first day, first show of Raghuram Rajan felt like a central banking equivalent of a blockbuster movie opening. Yes, everyone knew Rajan is a star. But no one expected such a dramatic script. As the second-youngest RBI governor read out his first set of policy interventions, even normally voluble TV anchors were at a loss for words..............

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Subbarao’s Advice to Successor: Follow Arjuna, Not Abhimanyu

Outgoing Reserve Bank of India Governor D Subbarao expressed hope that his successor Raghuram Rajan would be like Arjuna and find his way out of the Chakravyuha that the economy is in.  In 2010, Subbarao had compared the expansionary monetary policy to the Chakravyuha—a battle formation from which escape is next to impossible. He had also compared himself with Abhimnanyu the warrior who was trapped in the formation. “I wanted to hand over to my successor an economy that was stable. But now Raghuram has to be Arjuna who can get the country out of the Chakravyuha. I hope you will be able to tell your successor that I am handing over a miracle economy,” said the outgoing governor while speaking at a farewell event organized by RBI.................

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Farewell, people's banker at Mint Street

MUMBAI: Economists and market participants may argue over the efficacy of outgoing Reserve Bank of India governor D Subbarao's policy measures, but the common man has reaped a bounty in terms of customer-friendly steps during his tenure. Judging Subbarao's performance based on current market conditions would be inappropriate as no other central bank chief had to face such a hostile external environment at both ends of his term..........

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Six things D. Subbarao wants to do after retirement

There are six things on his wish list:.................

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Outgoing RBI Governor D. Subbarao: The man who dared to disagree

.........How will the history judge Subbarao? As a governor who fought fiercely for the central bank's independence, one who had a mind of his own and honestly did what he  thought was right for the economy? Or will the verdict be less favourable? ................

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Change of allegiance

My View on  "D. Subbarao: The govt insider who turned rebel": 

There are divergent views on the monetary policy stance Dr Subbarao had taken in different situations and his ‘change of allegiance’ once he shifted from North Block to Mint Street. But, those who have closely observed the happenings in the financial sector and in RBI during the last 5 years will not question the rationality of the steps taken by him to adhere to the advice given by Dr Manmohan Singh before he took over as Governor. As he himself mentioned last week, with the advantage of hindsight, changes in modalities like reducing the frequency of policy announcements may be made. But, it will be difficult to contest the defence he put forth for a strong and autonomous central bank (within legislative mandate) or to move away from the financial inclusion initiatives he has started. His success has to be seen in the background of the circumstances which gave the outside world a feeling that monetary policy did not get the fiscal policy support in adequate measure for political and external reasons. His successor is aware of the situation and the first task before him will be to bring the North Block on the same page.  

- M.G.Warrier

Raghuram Rajan's speech upon taking office as 23rd governor: Full text

...............Before I turn to specifics, let me repeat what I said on the day I was appointed. The Reserve Bank is a great institution with a tradition of integrity, independence, and professionalism. I congratulate Dr. Subba Rao on his leadership in guiding the bank through very difficult times, and I look forward to working with the many dedicated employees of the RBI to further some of the important initiatives he started. I have been touched by the warmth with which the RBI staff have welcomed me..................

Read | Business Standard

Rajanspeak: brave and reformist

Brilliant and bold. That’s the takeaway from the first day first show of Raghuram Rajan, Reserve Bank of India’s 23 Governor. Dr. Rajan’s statement is brilliant in its vision and bold in some of the measures that it contemplates. And to be politically correct, Dr. Rajan has remembered to give high priority to the subject of financial inclusion, which was the second of the six broad themes that he highlighted, next only to monetary policy...........

Read - The Hindu

The Man Who Predicted World’s Future Sets Out to Correct India’s Present

...Rajan’s arrival at Mint Street is being seen as similar to that of Masaaki Shirakawa at the Bank of Japan last year. Shirakawa shook up a regulator that was steeped in conservatism with unconventional methods that turned Japan into one of the best-performing markets in the world as he sought to make good on a promise to pull the nation out of the economic doldrums. The new Indian central bank governor is, crucially, seen as someone who can communicate easily with and relate to both international investors as well as the home constituency............

Read - ET

Dr Feelgood takes charge

......“These are not easy times, and the economy faces challenges,” Rajan, who was chief economic adviser before being moved to the central bank, said. “At the same time, India is a fundamentally sound economy with a bright future. Our task today is to build a bridge to the future over the stormy waves produced by global financial markets. I have every confidence we will succeed in doing that.”.........

Read - Mint

Raghuram Rajan starts with a bang

........Dr. Rajan said a panel of experts under Deputy Governor Urjit Patel will come up with suggestions on what needs to be done to revise and strengthen the monetary policy framework. While preserving the purchasing power of the rupee, he said that the RBI had two other important mandates – inclusive growth and development as well as financial stability. The governor said that access to finance is still hard for the poor and for rural and small and medium industries. ``We need faster, broad based, inclusive growth leading to a rapid fall in poverty.’’..........

Read - The Hindu

Rajan hits the ground running

........"At a time when financial markets are volatile, and there is some domestic political uncertainty because of impending elections, the RBI should be a beacon of stability as to its objectives. That is not to say we will never surprise markets with actions,"..........

Read - IE

Good luck, Governor Raghuram Rajan

Raghuram Rajan comes to the Reserve Bank as someone who understands the world of finance — which is beyond the ken, let us face it, of mainstream economists — and has spent some time studying India's financial sector in the company of eminent practitioners to prepare a roadmap of reform. Ideally, he should focus on implementing the report. But central bankers rarely find themselves in ideal conditions and Rajan will have his hands full with the immediate task of nursing a very depressed rupee back to some state of cheer...........

Read - ET

Hope Raghuram Rajan will cut rates, improve credit flow: India Inc

......I think he's an excellent choice and he would provide effective leadership to the RBI. Of course, the immediate problem that he will have to deal with is the volatility of the foreign exchange market and the volatility of the Rupee.......

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The road ahead for Rajan

....The task of transforming RBI into a modern central bank consists of redefining the mandate of the central bank and its functions, clearly defining the objective of monetary policy and institutions related to conduct of monetary policy, and redesigning the role of RBI as a banking regulator. These issues have been raised by a number of official committees, including the one headed by Rajan himself.............

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RBI to set up panel on mobile-based payments: Rajan

....."There is substantial potential for mobile based payments. We will set up a technical committee to examine the feasibility of using encrypted SMS-based funds transfer using an application that can run on any type of handset,” he said at his first news conference after taking over as the 23rd governor of the country's central bank.............

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Jalan Panel to Screen Bank Applicants

Bimal Jalan, a former RBI governor, will head an external committee that will screen applications for new banking licence. The announcement was part of a blizzard of steps announced by Raghuram Rajan on Wednesday evening shortly after taking charge as RBI Governor. New banking licences would be issued by the end of January 2014, while the central bank is also contemplating ‘on-tap’ issue of licences, Rajan said...........

Read - ET

‘Looking forward to see how RBI functions in coming months’

The colonial mansion on 5, ML Dahanukar Marg (formerly Carmichael Road) in South Mumbai generates as much awe and mystique as its occupant. The heritage building with spacious rooms on a two-acre prime plot, which was taken on lease from Mumbai Port several decades ago, is the biggest perk of the Governor of the Reserve Bank of India (RBI) which is not a highly paid job. Its occupant in the last five years, D Subbarao, is shifting out after a five-year long innings.........

Read - IE