Speaking during an ongoing lecture series here, Rajan said it was the moral duty of the state to bring up communities who have lagged behind others for historical reasons.
"I think what many people would agree that as communities become successful and no longer need reservation to support them, they should leave the reservation for the truly needy," Rajan said.
"So we should find a way to migrate the reservation process both within and across communities to those who really need it."
The RBI governor said that across the world reservation or affirmative action policies have played an important role in "getting communities which were hitherto deprived into the mainstream".
"I think, in India, if you look at some of the states which moved early (towards adopting reservation policies) they sometimes have better indicators of progress, prosperity, social mobility, etc. I am referring to the southern states," he added.

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