Rajan exhorts banks to lower rates; allays outflow fears

TIL Desk Business/Mumbai/ In his swansong monetary policy, RBI Governor Raghuram Rajan today lambasted banks for passing on rate-cut benefits “only modestly” to borrowers on one pretext or other – the latest being dollar deposit outflows – even as he decided to stay put on inflation-control as priority.

The outgoing Governor also sought to make light of his critics, saying he also gets ‘anonymous thank you notes’ even while on plane and described his tenure at RBI as “fantastic”.

Rajan, who has decided to return to academia after his three-year tenure ends on September 4, said today’s policy review was likely to be the last one to be Governor-led, as a the exercise would be conducted by new six-member panel going forward.