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Former RBI Governor came back to India to exchange old notes

Former RBI Governor came back to India to exchange old notes

Among other things, Rajan also spoke about public sector banks, saying mergers should take place when banks are healthy.

That is why Rajan, who is now a professor of finance at the University of Chicago in the USA, had to come back to India to exchange his old Indian currency notes with the valid ones after demonetisation.

Rajan, the only central bank governor in two decades who did not get a second term, said India does not move linearly and there are reasons for certain amounts of hope in the Supreme Court judgement on privacy which expanded the realm of tolerance for certain kinds of behaviour. During an-hour long interview, Raghuram Rajan talked about various financial issues such as demonetisation, bad debts and economic growth.

Demonetisation has come at a huge cost for the Indian economy, former Reserve Bank of India (RBI) governor Raghuram Rajan has said. "RBI offered an opinion on alternative approaches to note ban", Rajan said.

"We need truly independent professional board for public sector banks... which is independent of government, and professional, which have the ability to appoint CEOs", Rajan said while launching his book "I do what I do" in Mumbai. To which, Rajan as the RBI head gave the analysis -orally- and cautioned the government that short-term cost would outweigh long-term benefits.

He said India can lecture the world on things such as culture and history, but on growth, it should do that only after achieving 8-10 per cent rate for 10 years. He said he had taken along Indian currency to the USA and had to come back to India to "actually change that back" into valid currency notes.

"Many of us have certainly fairly comfortable lives there...coming back to India and doing what I did, gave a tremendous sense of fulfilment". "They will come back", he said. Rajan said, "If you're not prepared on Day 1 with all the currency that's being replaced - currency is important for economic activity - you will have a chilling of economic activity".

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