Two-thirds of his tenure was under BJP, says Raghuram Rajan

Two-thirds of his tenure was under BJP, says Raghuram Rajan

Agency News

Giving a befitting reply to Finance Minister Nirmala Sitharaman, former RBI Governor Raghuram Rajan said that two-third of his tenure as the head of the Reserve Bank of India(RBI) was under the BJP government.

He was responding to the Nirmala Sitharaman’s allegation that it was during Rajan’s period as Governor of the RBI that India’s banking sector was clogging with bad loans.

"I had just over eight months in the previous (Congress) government and I had 26 months under this (BJP) Government. So much of my term (as RBI Governor) was under this government," he told CNBC in an interview.

He was asked about Sitharaman's comments in New York earlier this month where she said that the Indian public sector banks had the "worst phase" under the combination of former Prime Minister Manmohan Singh and Rajan.

Rajan, however, hasten to add that he doesn't want to get into a political debate on the issue.

"Let me not get into a political back and forth. The reality is, there is a clean-up which we started, which is underway, which needs to be completed fast. The recapitalization has been done, but it also has to be done in the non-bank financial sector which is ceasing up and you need to clean-up, get the financial system going again if you want stronger growth," he added.