Former RBI Chief Praises Rajan


India's central bank chief Raghuram Rajan deserves an "A+" grade for his performance over the past 10 months, says predecessor Duvvuri Subbarao.
"If there is anything beyond , I would give it to him. He's been able to his scholarship of finance to practical situations. He's doing very well," Subbarao - who was at the helm of the Reserve Bank of India from September 2008 to September 2013 - told CNBC on Friday.

"There's no doubt from his decisions and actions over the last 10 months he is doing what is right," he said.

Rajan took the reins from Subbarao amid a challenging environment of sluggish growth, stubbornly high inflation and a currency at its weakest level in history.

Asia's third largest economy expanded 4.7 percent in the fiscal year that ended March 31, with growth stuck below 5 percent for a second consecutive year. Meanwhile, retail inflation has averaged around 10 percent for the past two years, according to Reuters.

His success in restoring financial stability and regaining investor confidence within weeks of being on the job has earned him the nickname India's "rock star" central banker.

The rupee, for example, has appreciated over 9 percent since September, helped by measures the governor took to reverse capital outflows and liberalize the banking system.

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