Jaitley backs Rajan, ducks query on RBI Governor’s extension

Finance Minister Arun Jaitley on Monday denounced any attack on Reserve Bank Governor Raghuram Rajan and said the debate should be about the issues and policies, and not about the personalities.

Jaitley, however, declined to comment on whether Rajan’s term would be extended after his current three-year tenure ends this September. Rajan has been facing a continuous attack by BJP MP Subramanian Swamy and by some other sections, who have demanded termination of his service or at least denial of any extension while alleging the RBI Governor has failed to lower interest rates and boost the economy.

“I do not approve of any of these comments being made by anyone as far as the personality is concerned, because the RBI and its Governor is an important institution in Indian economy,” Jaitley said.

The Finance Minister, who is here on a six-day investor wooing trip, further said, “People should be open to discussing all issues and policies, they have a right to support those policies, they have a right to criticise those policies. But this can’t be converted into comments on personalities because that blurs the issue.” The comments follow Swamy writing to Prime Minister Narendra Modi twice within a fortnight calling for sacking of Rajan even before his term comes up for renewal in September.