Raghuram Rajan 'excellent choice' for RBI top job: C Rangarajan

Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan on Tuesday welcomed appointment of Raghuram Rajan as RBI Governor, saying he is an "excellent choice" to give direction to the Indian financial system during the challenging times.

"This is an excellent choice. Rajan comes with an excellent background in financial matters. He has been one of the outstanding professors and in the last one year or so he has been dealing with the problems in India. And therefore at the moment I think he will make an excellent Governor," Mr Rangarajan said.

Prime Minister Manmohan Singh has approved the appointment of Mr Rajan, who is currently posted as Chief Economic Advisor in the Finance Ministry. He will succeed D Subbarao, due to relenquish office in first week of September after completing five years term.

The PMEAC chief said Rajan has an understanding of the Indian economic situation and has also worked with the Prime Minister.

In his comments, Planning Commission Deputy Chairman Montek Singh Ahluwalia said Mr Rajan has appointed to head the RBI at a tough time.

"It's a very tough time, we need someone who can give direction...the important thing is giving leadership for the next five years on how should the Indian financial system move. I think Rajan will be the best person to do that," he said.