Former RBI Governor Raghuram Rajan on Thursday said that he was open to stay for the second term because he thought that there were still some unfinished business at the Central Bank.
Rajan said it in an interview to India Today that came days after launch of his book -I do what I do. He also clarified that he never resigned. "My term came to an end and I left," Rajan said when asked whether he left the RBI voluntary.
The former governor said that he was open to stay if the nation which is represented by the government wanted him at the RBI. During an-hour long interview, Raghuram Rajan talked about various financial issues such as demonetisation, bad debts and economic growth.
Rajan spoke about some of the conversations that he had over demonetisation while he was heading the RBI. He said that the Central government had once asked him about the cost and benefit of such move. To which, Rajan as the RBI head gave the analysis -orally- and cautioned the government that short-term cost would outweigh long-term benefits.
When asked that despite the RBI's caution the government moved ahead with the demonetisation, Rajan said that the Centre does not need the RBI's permission. "The government can also passed a directive and do it," Rajan said. He also revealed that during his time there was no date fixed for the move. "My sense was that there was still time to persuade the government otherwise," he said.
Rajan himself was surprised by the demonetisation announcement on November 8 and later he had to come back to India to exchange scrapped currency.
Rajan also spoke about the impact of demonetisation and said until complete data comes in one cannot tell the real effect of demonetisation. He referred to financial services company JP Morgan's report on demonetisation where it claimed that the cost of note ban could be 1-2 per cent of the GDP.
When asked if he would be willing to return to India for another position or was happy teaching in the US, Rajan said he is not special among the diaspora and there were many people who, if called upon, would come back and do what is necessary.
"Many of us have certainly fairly comfortable lives there...coming back to India and doing what I did, gave a tremendous sense of fulfilment. I think it's very selfish thing to come back. Ya, if called upon and if there is a place where you can make a big difference, of course," he said.