Subramanian Swamy writes to PM Modi, seeks termination of Raghuram Rajan

NEW DELHI: Upping his ante against the RBI governor, BJP leader Subramanian Swamy wrote to PM Narendra Modi, seeking Raghuram Rajan's immediate termination.

“Why should we retain a UPA appointee? He (Rajan) is mentally not fully Indian, he believes in raising interest rates to decrease inflation. Issey berozgaari badh gayi hai, usko jitna jaldi chutti karke Chicago bhej sakte ho, bhejna chahiye," Swamy said in his letter.

"I am shocked by the wilful and apparently deliberate attempt by Dr Rajan to wreck the Indian economy," he wrote.

Also, bad loans with public sector banks has doubled to Rs 3.5 lakh crore in two years, he said.

Swamy had earlier suggested that Rajan be removed from the post as he was responsible for "unemployment and collapse" of industrial activity.

"In my opinion, RBI Governor is not appropriate for the country. I don't want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country," Swamy told reporter in the parliament last week.

The Governor's actions have "led to collapse of industry and rise of unemployment in the economy", he said. "The sooner he is sent back to Chicago, the better it would be."

But a survey by ETMarkets.com shows RBI governor Raghuram Rajan getting overwhelming support and applause for his stewardship of the RBI. Out of a poll of 9,168 readers, 69% gave him a perfect 10; while a thumping 87% said they will like him to continue as the governor.

Rajan is the on-leave Professor of Finance at the University of Chicago's Booth School of Business.

After assuming charge as RBI governor in September 2013, Rajan gradually raised the short-term lending rate from 7.25 per cent to 8 per cent and had retained the high rates throughout 2014.

He kept the rates high, citing inflationary concerns despite intense pressure from the Finance Ministry and the industry for softening them with a view to boosting growth.

The Governor began the process of lowering the rates in January 2015 and since then it has come down by 1.50 per cent to 6.50 per cent.