Raghuram Rajan takes charge of RBI

Raghuram Rajan, a suave, unflappable University of Chicago economist, took over as the 23rd RBI governor today at a time when the Indian economy is facing its worst crisis in over two decades. On Wednesday he said India's economy was "fundamentally sound" and had a "bright future" in his first remarks after taking the helm at the central bank earlier in the day. (Reuters photo)

Dr Rajan takes charge as some analysts warn that the Indian economy could be heading for a meltdown, with a record current account deficit and a currency which has lost up to a quarter of its value against the dollar this year. (Reuters photo)

Highlighting his top priorities, Dr Rajan said "protecting the value of money is an important objective" and "low and stable levels of inflation crucial" remains crucial. He said he will formulate policies that will lead to "faster, broad based inclusive growth leading to fall in poverty".

In this pic: Raghuram Rajan (L) hugs outgoing governor D Subbarao during the taking over ceremony at the bank's headquarters in Mumbai. (Reuters photo)

Dr Rajan also stressed on the importance of communication. "The RBI should be a beacon of stability... the public should have a clear idea of the central bank... key to all this is communication," Dr Rajan said. (Reuters Photo)

Dr Rajan also outlined several measures to support the Indian rupee. A major part of Dr Rajan's speech was also focused on shoring up investors' confidence, which will undoubtedly boost market sentiments. (Reuters Photo)

Dr Rajan said the government would look to reduce investments by banks in government bonds "in a calibrated manner". He added the RBI would work together with the government and the market regulator to steadily liberalise markets.

In this photo: Raghuram Rajan receives a bouquet from the RBI deputy governor KC Chakrabarty after his arrival at the bank's headquarters in Mumbai. (Reuters photo)

In the crisp delivery of promises was also this: "Some of my actions will not be popular...am not looking to garner Facebook likes." (AP Photo)

Analysts said they had expected the 50-year-old academic and celebrated economist to do his homework, but had not expected him to detail so comprehensive a plan. Markets, they said, were expected to react positively after many dark days. (Reuters Photo)