Prime Minister Narendra Modi gestures to Reserve Bank of India (RBI) Governor Raghuram Rajan at an event on financial inclusion in Mumbai April 2, 2015.(Reuters)
Prime Minister Narendra Modi today praised Governor Raghuram Rajan for being "perfect" in explaining complex economic issues to him and said that there was similarity in thinking on both the sides.
Stating that Governor Rajan would explain implications of the Reserve Bank of India or RBI's policies in "just three-four slides", PM Modi also said that he must have been a very good 'teacher' in the past.
Governor Rajan, who has been a Professor of Finance at University of Chicago and joined RBI as its Governor in September 2013, said on his part that there has always been a "constructive dialogue" between the RBI and the government.
There have been talks from time to time about differences between the central bank and the government on a range of issues including on inflation and interest rates.
While the government and the RBI have always maintained that there were 'no differences' between them, some proposals in this year's Budget indicated shifting certain functions out of the central bank's ambit including on the public debt management.
Speaking at a function to mark 80 years of the Reserve Bank of India (RBI), PM Modi expressed satisfaction over the role played by the central bank under Governor Rajan.
"There is lot of similarity between the thinking of the RBI and government... This is absolutely essential. As a
representative of the government, I express my satisfaction. RBI is performing its role and I congratulate Raghuram ji and his team," he said.
At the same function, Finance Minister Arun Jaitley also congratulated Governor Rajan, his team and past RBI Governors for their contribution in making the country's economy resilient.
Recalling his bi-monthly meetings with Governor Rajan, PM Modi said he is "perfect" in explaining the implications of the policies and would do so in just three-four slides.
PM Modi said he himself was not adept at understanding the economic issues, but as the Prime Minister he had to learn and understand complex issues.
In his address, Governor Rajan said: "There has always been a constructive dialogue between the Government and the Bank, informed by their respective time horizons and attitudes towards risk.
"And history records that successive governments have invariably appreciated the wisdom of the Reserve Bank's
counsel."