Raghuram Rajan to succeed D Subbarao as next RBI governor

Raghuram Rajan, Chief Economic Advisor in the finance ministry, has been appointed as the next governor of the Reserve Bank of India (RBI).

He will replace D Subbarao, who completes his five-year term on September 4, and will be the 23rd Governor of the central bank.

Rajan, a former IMF chief economist, took over as the Chief Economic Advisor in August last year.

"Prime Minister Manmohan Singh has approved appointment of Raghuram Rajan as Governor of RBI for a term of three years," an official statement said.

Known for his frank views, Rajan was also honorary economic advisor to the Prime Minister. He was acclaimed for predicting the 2008 global financial crisis.

An alumni of IIM-Ahmedabad and IIT-Delhi, Rajan did his doctorate from the Massachusetts Institute of Technology. He was professor at the University of Chicago's Booth School of Business before taking over as CEA.

Rajan was also involved with the report on Financial Sector Reforms, which was authorised by the Planning Commission.

As the new RBI chief, Rajan will have a challenging time as he will have to battle the declining rupee, sliding growth and rising retail inflation, amid global economic uncertainty.

With inputs from PTI