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Why Raghuram Rajan does not deserve a second chance for RBI governorship

Media is all going wild these days with speculations and support for a second term for RBI Governor. But many groups in social media are mobilizing support for him for gains that are totally contrary to interests of our nation.

Under his stewardship, banks have had their worst performances, primarily for his policies to encourage loans to corporates with strong political connections. Loans were disbursed by banks without proper compliance and procedure, leading to huge losses. It is such forces which now want him to continue. So as to keep encouraging such practices.

For those who feel, he being out of government is a good sign, look at how bank licenses have been issued. RBI still doles out licenses on a whim and in a very miserly fashion. A modern outlook demands that licenses should be offered on tap but no, the Governor didn't encourage that.

Look at the overall customer service in the banking industry. Its pathetic, largely because RBI does not encourage banks to be people friendly. It should be the role of a regulator to encourage such policies which are beneficial to consumers.

As a whole, if you see, the banking sector is performing extremely poorly today and I had written two blogs on this previously as well.


People should be prudent and research well, before blindly believing into the section of social media who wants further exploitation of the banking sector. This they believe would benefit the rich and powerful.

 In fact, the only positives happening from the Jan Dhan Yojna or action against NPA accounts, is coming out from prodding by the Government of India.



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