What's Next for Rajan and the RBI?

The video discusses the reemergence of a financial idea in India, initially proposed in February but gaining traction now due to the country's financial challenges, including bad loans and budget deficits. Raghuram Rajan, the current central bank governor, opposes the idea, emphasizing the need for state-owned banks to clean up their balance sheets. He believes the central bank should maintain its current dividend policy. However, with Rajan leaving soon, the future of this idea may depend on the new governor's stance.

How does the government plan to address the budget deficit while dealing with the banks?

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What implications could the appointment of a new governor have on the banking situation?

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