Raghuram Rajan pitches for RBI's independence

New Delhi: In his last public speech before demitting office, RBI governor Raghuram Rajan on Saturday made a vigorous case for a strong and independent Central Bank that can say ‘no' to highest echelons of the government to ensure macroeconomic stability.

RBI governor Raghuram Rajan leaves after addressing the students of St Stephen's College in New Delhi on Saturday. Pic/PTI

The outspoken RBI governor, who completes his three-year term today and plans to return to academia, also pit­ched for elevating the ranking of central bank chief.

"The Central Bank should be independent and should be able to say ‘no' to seemingly attractive proposals," he said delivering a lecture at St Ste­phen's College here.

He said the ranking of the RBI governor, currently at par with Cabinet Secretary, nee­ded to be commensurate with the role. "There is a reason why Central Bank governors sit at the table along with the finance ministers in G-20 meetings," he said.

Rajan, who has been vocal on issues like religious tolerance, said a Central Bank governor has to warn about the dangers of certain courses of action or certain tendencies in the economy for growth and macroeconomic stability.