Crisis-ridden Yes Bank was put under a moratorium last week, with the RBI capping withdrawals at Rs 50,000 per account and superseding its board.
The priority should be on convincing companies and households that the virus is under control, said the former RBI governor
India can still reverse its slowing economic growth by paying attention to key issues, he added
The economic refugees of earlier years have been replaced by well-placed people leaving (or staying away from) India's unattractive political economy, writes T N Ninan
Rajan said one has to be truly cynical to not be moved by these actions
Here are the five people who best represent the story of the Indian economy in the 2010s
Not just decision-making but also ideas and plans emanate from a small set of personalities around the Prime Minister and in the PMO, says Rajan
The Reserve Bank of India should carry out an asset quality review of the non-bank finance companies, Rajan said.
As the economy slows, the Reserve Bank governor will find it tough to keep all the balls in the air in the many roles he performs.
A deal good enough to restore confidence in cross-border investment is not likely "in the next year or so, and could even require a new administration in the US," he added.
The Fed last month cut interest rates for a third time this year, citing a combination of trade-policy uncertainty, slowing global growth and below-target inflation
He said what the country needs is to create an environment where an educational eco system can flourish.
'I would say engaging in such a way that we bring more supply chains to India and create more job opportunities,' Rajan said
He said the country needs a new generation of reforms to accelerate economic growth. At 5% GDP growth rate, India was witnessing substantial economic slowdown
Sitharaman said while she is grateful that Rajan did an asset quality review, but people should know what makes the banks ailing today
Rajan said bank mergers are a step in the right direction but did not come at a right time
People in the authority, he emphasised, have to tolerate criticism
The emerging backlash against CSR and the resultant endorsement of shareholder capitalism make sense
Rajan also said "a fresh set of reforms" are now needed to boost the economy and growth rate
The Rajya Sabha MP said that the 'wrong policies' adopted during former finance minister Arun Jaitley's tenure were responsible for the economy slowing down