TIL Desk/Business/Mumbai-Outgoing Reserve Bank Governor Raghuram Rajan, Friday, disclosed that idea of raising diaspora deposits, which changed the downward course of the rupee when he took over in September 2013, had come from bankers and he was very sceptical about it given the cost to the exchequer.
“I thought this is bankers coming in again to get one of the sweet deals which will help them. They will go out and raise the money. They will get fantastic bonuses and we will end up paying for it,” Rajan said, after launching his predecessor D Subbarao’s memoir at RBI headquarters in Mumbai.
Rajan conceded that he thought the idea to be “completely idiotic” as it was akin to giving 3.5 per cent subsidy to bankers and it was “the worst of the ideas on the table” which made him request Subbarao to announce it while departing. Rajan announced the scheme on the evening of September 4, 2013, the day he took over.
