RAGHURAM RAJANNew RBI Governor

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

Key Financial Indicators before and after Raghuram Rajan’s taking over

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

First Day First Show

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