RBI Governor Raghuram Rajan not seeking 2nd term: Report

Kolkata-based Anandabazar Patrika reported that Rajan has requested the prime minister to relieve him of his duties after his tenure ends in early September.

Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly requested in a letter to the prime minister to relieve him of his duties at the country's apex bank after his tenure ends in early September, the Business Standard reported citing Kolkata-based Anandabazar Patrika.

The Bengali daily reported, citing sources, on Wednesday that Rajan was looking forward to return to the U.S. after his term ends at the RBI to continue with his academic interests. His family, it added, had already left for the U.S.

Further, the Anandabazar Patrika report noted that Rajan was considering working with a university to carry out definitive research on India's present state of economy. Both Prime Minister Narendra Modi and Finance Minister Arun Jaitley were reluctant to relive Rajan despite criticism from people within their party, said the daily.

Jaitley was cited as saying that Rajan's role at the RBI and his subsequent policies helped India's GDP growth. His removal will also create negative sentiments in India and international business communities, said the report.

Rajan is a former chief economist at the International Monetary Fund and professor-on-leave at the University of Chicago's Booth School of Business.

Meanwhile, a Bloomberg report highlighted that the rupee weakened and bonds declined as the news trickled from Bengal's leading daily. It added that compared to gains witnessed earlier, the rupee lowered by 0.29 percent to a one week low of Rs. 67.45 to a dollar.