killing he had pointed to spectrum allocation as an instance where the award process did not change despite demand having grown exponentially a specialist in banking and finance he was professor of finance at the university of chicagos booth school of business his first major brush with public policy in india was as the head of the planning commission working group on financial sector reforms in 2008 he was then appointed honorary advisor to the pm before taking over from kaushik basu as cea in august last year rajan who was also part of a committee that drafted a report called rethinking central banking for the brookings institute an american think tank in 2011 is expected to use some of his new ideas at rbi he will take charge as rbis 23rd governor after d subbarao completes his fiveyear term on september 4 it is perhaps an indication of the governments eagerness to scotch speculation and calm the markets at a time of exchange rate volatility and a sliding economy that it has unusually chosen to name subbaraos successor a month in advance in shifting from delhi to mumbai rajan will move geographically closer to his brother mukund g rajan the tata groups chief ethics officer and brand custodian economists and bankers said the external sector will be rajans biggest challenge the high volatility of the external environment makes rajans task tougher i think he will be able to innovate more and think out of the box said hdfc chairman deepak parekh echoing similar sentiments c rangarajan a former rbi governor who now heads the economic advisory council to the pm said the immediate challenge for him is to ensure stability in the foreign exchange market and to reduce volatility going forward it would be maintaining price stability and growth