RBI should be allowed to take its own decision: Raghuram Rajan

RBI has been enjoying full autonomy and support of the government so far and it should be allowed to take its own decision, Governor Raghuram Rajan has told the central bank's staff.

While addressing an in-house meeting of RBI employees here on the first day of his three-day visit to Odisha, Rajan also said that with agriculture playing a key role in India there is a need to focus on small and medium agro-based projects.

"Our economy is agriculture based. Therefore, we should focus on small and medium agro-based projects," Rajan said.

He also said that the Indian economy was on the right track and could emerge as a major player globally. Rajan, however, said the RBI which has been enjoying full autonomy and support of the government so far and should be allowed to take its own decision, said an RBI employee who was present at the meeting where media was not allowed.

"RBI's decision is very crucial as it is connected with fate of crores of people. A slight mistake could put the entire country and its people in trouble. Therefore, RBI's decision must be accurate and to the point keeping in view the interest of the people," the employee said quoting Rajan.

In the interaction programme with RBI employees, Rajan also said Odisha was rich in mineral resources and the state should also use its tourism potential to boost the economy.

Rajan also visited Kalinga Institute of Social Sciences (KISS) and discussed with its officials regarding the financial model of the school and its management.

During his visit to the state, Rajan is scheduled to address Odisha government officers, meet Chief Minister Naveen Patnaik and address the Harekrushna Mahatab Memorial Lecture on "The Global Economy and India".