Progress on monsoons along with favourable base effect in 2HFY2017 continues to point towards RBI achieving its near 5 per cent inflation target by the year-end
The stress in the banking sector, which mirrors the stress in the corporate sector, has to be dealt with in order to revive credit growth.
Here is some background on the candidates seen as potential successors to Rajan at the RBI
Rajan said India's good economic fundamentals would allow it to overcome any 'sharp corrections' in global markets
RBI promises to take all necessary steps, including liquidity support
The RBI is not statutorily independent from the government but has long enjoyed wide latitude
Bankers and government officials told Reuters Rajan's successor may be less aggressive in fighting bad loans, but the general direction will remain the same
Rajan said the central bank has used up all its "space available" to cut interest rates
Anandabazar Patrika reported that Rajan would prefer to go back to the United States after his three-year term expires in early September
Lenders have reported a surge in their bad loans in the six months to March after an asset quality review ordered by the central bank.
These cash shortages increase banks' funding costs, making it harder for them to lower lending rates
The prospect of further falls in remittances is a hindrance for the Reserve Bank of India, as it seeks to bullet-proof the economy against sudden capital outflows
The ratings agency currently rates India at Baa3
In 2013, India suffered its worst currency crisis in more than two decades but has regained the confidence of foreign investors in part after its current account deficit has narrowed sharply and its foreign exchange reserves hit a record high
The draft guidelines include a move to allow large industrial companies to buy up to 10 per cent stakes in new lenders
India's $121 billion troubled debt pile, over $100 billion of which is on the books of state-owned banks, has come under close scrutiny from prosecutors, the media and politicians
The surge is a stark turnaround from 2013 when the country's current account gap hit a record high due to outflows on expectations the US Fed would rein in its stimulus programme
After months of denying there was a liquidity problem, Governor Raghuram Rajan has reversed course.
RBI Governor Raghuram Rajan wanted to improve training for staff, through initiatives such as sending them to other central banks for short stints.
Fiscal outlook to be little bit challenging next year: CEA
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