Download - Raghuram Rajan
India’s GDP - Path• GDP in India is reported by the The World Bank Group
• The GDP value of India represents 2.97 percent of the world economy
•From 1970 until 2012, India GDP averaged 485.7 USD Billion reaching an all time high of 1872.9 USD Billion in December of 2011 and a record low of 63.5 USD Billion in December of 1970
• From 1951 until 2013, India GDP Annual Growth Rate averaged 5.8 Percent reaching an all time high of 10.2 Percent in December of 1988 and a record low of -5.2 Percent in December of 1979
• The HSBC Trade Confidence Index, the largest trade confidence survey in the world, has positioned India at the top with 142 points.
Raghuram Rajan
• 23rd governor of the Reserve Bank of India
• Appointed for 3 years till 2016
• He was the Economic Counselor and Director of Research at the International Monetary Fund from September 2003 till January 2007.
• Mr. Rajan's claim to fame is his prediction of the 2008 global financial crisis
• Worked in various international universities like Chicago's Booth School of Business, Massachusetts Institute of Technology … • In January 2003, the American Finance Association awarded Mr. Rajan the inaugural Fischer Black Prize
• Gold medalist at both IIT – Delhi and IIM – Ahmadabad, PhD from MIT
Mr. Raghuram Rajan - Introduction
Six steps by Raghuram Rajan that propelled Sensex above 19,000
New bank licenses
Currency measures
SLR reduction
Oversease borrowing limit for banks
Priority sector lending
NPLs
SHORT-TERM TIMETABLE• Differentiated licences for small banks, and wholesale banks to be
considered • Onerous obligations on banks to invest in government securities to be
reduced• 10-year cash-settled interest rate future contracts to be allowed in money
and G-sec markets• Swap window for fresh FCNR (B) dollar funds; swap at 3.5% on tenors
over three years• Electronic bill factoring for small and medium firms• Enhanced resolution structure for financial firms
PANELS FORMED
• Deputy governor Urjit Patel and outside experts to suggest ways to strengthen monetary policy framework. Report in three months
• External committee under former RBI governor Bimal Jalan to screen applicants for new bank licences. New licences by January
• Nachiket Mor to head a committee to assess all aspects relating to financial inclusion
• Deputy governor K.C. Chakrabarty to study problem of rising NPAs and restructuring/recovery process
• Deputy governor Anand Sinha to suggest measures to improve working of debt recovery tribunals
5 Pillars On Which RBI Is Working
Broadening and deepening financial
markets
Strengthening banking structure
Expanding finance to small and
medium enterprises
Improving the system’s ability to
deal with corporate distress
Strengthening the monetary policy
framework
People’s Talk
“New RBI chief Raghuram Rajan starts with a bang, unveils his reform agenda” – HindustanTimes
“Superman or not, Raghuram Rajan has indeed made a difference” – Rediff.com
“Rupee recovers, stocks surge as Rajan takes charge at RBI” – HindustanTimes
“Raghuram Rajan plans ‘dramatic remaking’ of India’s banks” – Financial Times
“Rupee rallies on new RBI governor Rajan steps.” – Economic Times