The declining inflation and a negative industrial outlook have strengthened the case for RBI.
To the question on what comes first, clean up or growth, Rajan said the answer is unambiguously 'Clean up!'
India Inc on Wednesday said the Reserve Bank's move to cut interest rate by 0.50 per cent is "pro-growth" and exhorted banks to transmit the lower interest rate to borrowers to revive demand and kick-start the investment cycle.
'Das is friendly, but he finally does what he does. The quality of engagement is very good.'
Strong dollar will impact financial system in India.
RBI governor does not want to move in haste for achieving financial inclusion.
The RBI in November released a framework for large foreign banks with more than 20 branches to convert into wholly owned subsidiaries.
A section of the media on Thursday reported, quoting an unnamed EC official, that it may not allow RBI to go ahead with the plan before the polls and that they need more clarity from the Mint Road on certain aspects.
While he has plenty of critics at home, Rajan is a favourite among foreign investors and has been credited for bringing inflation under control.
The reason, he said, was the external environment was weak.
'From where prime ministers sit, it makes no difference at all who occupies the governor's post.' 'Literally anyone with a decent education or work experience can be appointed to the job, which is basically a managerial one with little room for manoeuvre,' says T C A Srinivasa-Raghavan.
The RBI Governor had earlier cautioned the banks on the risks involved in just hunting for numbers, asking them not to compromise on core objectives of the programme.
New Reserve Bank of India chief makes his first monetary policy statement on Friday with expectations he may scale back some of the emergency measures that have helped the rupee bounce from a record low.
The Reserve Bank on Wednesday said it plans to issue new bank licences around January, "consistent with the highest standards of transparency and diligence."
India's consumer price inflation dropped to 5.4 per cent in June
He has had a productive first year at the RBI -- one which saw, also, India's economic imbalances improve and the unexpectedly strong general election outcome.
The Prime Minister stressed on achieving financial inclusion.
The Indian Met Department has predicted a below normal monsoon.
A number of industrial countries are now resorting to populism and this has its own set of political implications.
'As long as the government owns the banks, bankers will follow signals from politicians as to how to lend.' 'State-owned banks will remain State-owned banks as long as the current dispensation is in power -- and certainly there will be no change if the other chaps get in,' says Mihir S Sharma.
With the setting of MPC, the interest rate setting powers would move from RBI Governor to the panel.
There is a sharp difference between the total remuneration paid at the public sector and private sector entities
The Financial Stability and Development Council members include heads of regulatory bodies like RBI, Sebi and Insurance Regulatory Development Authority.
India on Saturday favoured greater mobility of skilled labour
Says GDP growth rate from 2014-15 to 2015-16 will be greater than that of 2014-15 from 2013-14
Consumer food price inflation eased to 6.14%.
Arun Jaitley had proposed to set up a Public Debt and Management Agency.
Terming the 23.9 per cent fall in economic growth in the June quarter alarming, former Reserve Bank Governor Raghuram Rajan has said bureaucracy should come out of complacency and take meaningful action. The current crisis requires a more thoughtful and active government, he said, adding, "Unfortunately, after an initial burst of activity, it seems to have retreated into a shell."
Governor also says two-stage verification for card transactions might go; RBI in process of setting up IT arm
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
The hardening of the Wholesale Price Index follows an uptick in retail inflation.
India's crony capitalists will have had their day in the sun.
Despite no change in interest rates, India's largest lender, State Bank of India, last week became among the latest to lower deposit rates, often a precursor to lower lending rates, something some banks have already done for certain consumer loans.
There is little scope for significant monetary easing even in the next fiscal year.
'The Chinese devalued the yuan initially but then stopped'.
He also said that he stands by Modi as he admires his spine but took a dig at journalists planting "deliberately false stories" to provoke him.
After his decision to return back to academia, there have been voices suggesting that his candid public speeches were one of the aspects which made the government uncomfortable about reappointing Rajan for another term
Even if Modi had wanted Rajan out, the government could have done it with some finesse and tact.
'It will be interesting to see how Dr Patel handles gadflies with the maturity of egregiously petulant three year olds.' 'That Dr Patel does not, in so far as we can tell, cause society matrons to gush like hormonal teenagers can only be a good thing for him.' 'Look where their febrile imaginations and breathless prose took his predecessor.'
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