BJP MP from RS Subramanian Swamy writes to PM Narendra Modi, seeks immediate termination of RBI Governor Raghuram Rajan.


Days after being nominated to the Rajya Sabha by the Bharatiya Janata Party, politician leader on May 12 embarrassed his party by saying RBI governor Raghuram Rajan should be removed from his post as he is not fit for the nation.

Swami's comments came after it was reported that the RBI governor a day before had said foreign banks have stopped opening branches in India as they need to set aside a lot more capital due to the country's 'higher risk' credit rating. Delivering a lecture at Cambridge University, London, the RBI governor also said foreign banks think it is 'not worth' opening banks.

It's those comments that likely made Swamy unhappy.

"In my opinion, the RBI governor is not apt for our country. His move to increase the interest rates, so as to cut down inflation and stabilize the economy, has backfired and has badly affected the nation," Swamy told reporters.


Swamy blamed Rajan for non-availability of cheaper capital in the country.

He said Indian competitors stand no chance against cash-rich multinational corporations like Walmart unless they get capital at the same rate.

"They get capital at two percent interest. In India, the interest rate is 12 percent or even higher, thanks to Raghuram Rajan," Swamy said.