RBI Governor Raghuram Rajan 'doesn't want extension'

Reserve Bank of India Governor Raghuram Rajan has indicated that he doesn't want to remain in the position after his tenure ends in September, a media report said on Wednesday.

leading Bengali daily Anandabazar Patrika said Rajan had told the central government that once his term ends, he would return to the United States. Quoting sources close to Rajan, the daily said he had plans to join an American university and pursue research on the Indian economy. 

Rajan recently came under a strong attack from the BJP leader Subramanian Swamy who demanded he be sacked. However, Prime Minister Narendra Modi had indicated that he would want Rajan to continue, the daily said. 

Several leaders in the BJP have questioned the logic of Swamy's demand. It has been speculated he was being supported by party President Amit Shah.

The daily also quoted "informed sources" as saying the Prime Minister had supported a two-year extension for the governor.

Rajan also found support in Union Finance Minister Arun Jaitley who has told the Prime Minister, according to the daily, that if the Governor is sacked it would send a wrong message around the world.

Rajan has also been supported by several industrialists and think tanks around the world who believe that he is one of the finest economists. They have pointed out that Rajan had stuck to the path of reforms ensuring that India moved ahead on a growth trajectory.