Sir — This refers to the editorial, “RBI under Urjit Patel” (August 23). RBI chief Raghuram Rajan has succeeded to a large extent in defending his legacy. By ushering significant economic reforms at a time when the country found itself struggling with double digit inflation, a volatile rupee, falling forex reserves and an impending banking crisis, Rajan walked alone and faced the growth-inflation dynamic.
From adopting the consumer price index to view inflation and bringing India out of the infamous category of the Fragile Five, to offering discounted currency swaps to banks in order to spur forex inflows and allowing licensing of “differentiated banking entities” to increase financial inclusion, Rajan showed impeccable financial acumen. He also initiated the process of bad debt clean-up. Now, it is imperative for the next RBI Governor Urjit Patel to carry his legacy forward and transform India’s ossified financial system.