Rajan, 50, who has been in the Finance Ministry as the Chief Economic Advisor for barely a year, will replace Duvvuri Subbarao as the Governor on September 4.
Rajan's appointment as the 23rd central bank chief comes at a challenging time, when the economy is battling industrial slowdown, declining rupee, rising prices and all-time high CAD.
According to the media reports, Rajan is known for his frank views and was acclaimed for predicting the 2008 global financial crisis. In 2005, Rajan had delivered a lecture critical of the financial sector, arguing that a financial disaster might be looming.
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