On one hand, Rajan will always be remembered for creating institutions such as Payment banks and Small Finance banks, on the other he will be remembered for creating controversies with his statements.

Here, we have highlighted 5 positive and negative points of Raghuram Rajan's three year term:

5 Positive Points:

1. Transformation in Banking sector:

Rajan granted permission to IDFC and Bandhan Financial Services to open banks. RBI issued guidelines for Payment banks and Small Finance banks and also granted permission for the dissolution of SBI's associate banks.
Raghuram Rajan launched the Unified Payments Interface (UPI) system. The UPI seeks to make money transfers easy, quick and hassle free.

2. Big announcements:

In June 2015, RBI announced its Strategic Debt Restructuring scheme. It has been introduced with a view to ensuring more stake of promoters in reviving stressed accounts and providing banks with enhanced capabilities to initiate change of ownership. This scheme will help banks to bring the willful defaulters to limelight. In 2016, RBI also announced the Discussion Paper for enhancing Credit supply for large borrowers through market mechanism.

In Nov-Dec 2015, RBI started the work of reviewing assets' quality. This initiative was started to keep control over growing non-performing assets.

3. Control over inflation:

In 2013, when Rajan took over as RBI governor, the  retail inflation rate was 9 per cent and wholesale inflation rate was 7 per cent. After considering this situation, Raghuram controlled the increase in interest rates and thus, bringing the inflation rates down.
In August 2015, the retail inflation went below 4 per cent and according to the latest data, the retail inflation stands at 6 percent.

4. Rupee strengthened in Rajan's tenure:

One month before when Rajan became the RBI governor in August 2013, the value of rupee was 68.35 against dollar, the biggest drop ever. But after he took over as RBI governor, he started a special swap window system to strengthen rupee. This system helped in inflow of $ 3400 crore. By the end of 2014, the value of rupee was 60 against dollar. Currently it is Rs 67 against dollar.

5 Long Term Loans:

In Rajan's tenure, for the first time, the longest ever government bonds with 40-year maturity were issued.  This move was taken to attract yield-hungry overseas investors to domestic debt market. Foreign investors were given 5 per cent holding in government bonds, whereas Indian firms were given permission to get money via Masala bonds.

5 Negative points:

1. Slow growth of Industries:

During the tenure of Rajan, the main focus was to reduce inflation rate and not the growth of industry. Industries used to blame the high interest rates provided by RBI for their slow growth. Rajan always denied the formula of decreasing rates to boost industries' growth.

2. Relations with government:

Senior BJP leader, Subramanian Swamy always stood against Rajan. He had written to PM Narendra Modi seeking immediate sacking of Rajan while alleging he was 'mentally not fully Indian' and has willfully wrecked the economy.
While delivering his lecture in Cambridge University, Rajan had said that making policy is easy but getting approval from the government is difficult. And, he had also said that he wants to continue with his second term, but government is not in the favour. This all proves that Rajan' s relation with the government was not too good.

3. Faced criticism for his decisions:

Firing yet another salvo at RBI Governor Raghuram Rajan, BJP MP Subramanian Swamy alleged that the former IMF chief economist had planted "a time bomb" in the Indian financial system that will explode in December. He was pointing towards the redeemable USD 24 billion in foreign exchange to be paid out by banks.

4. Statements on Political issues:

When the debate of tolerance and intolerance was going on in the country, Rajan supported tolerance and said that it is essential for the growth of economy. But his statement did not go down well with other experts and alleged that Rajan is not a politician but a custodian of nation's treasury. Rajan should not give statements on such issues. It can prove wrong for the economy nad market.

5. Controversial statement:

'My name is Raghuram Rajan and I do whatever I want to do. I am not a chair leader of  RBI market. Instead of asking for the reduction in interest rates it is better to reduce the rates of real estate. '' These controversial  statements have been given by Rajan in his tenure. Rajan's statements got different reactions from different sections and he got caught in some sort of mess or the other due to this.

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