India's central bank governor to step down in September

Raghuram Rajan will return to the academia.

The governor of the Reserve Bank of India will leave his post when his term ends in September, the regulator said in a statement.

In a letter to RBI staff, Raghuram Rajan noted that he will return to the academia after his term.

Under Rajan's watch, the RBI initiated an Asset Quality Review that forced timely recognition of bad debts and provisioning.

The central bank has also cut interest rates by 150 basis points, allowing the government to issue a 40-year bond for the first time.

Rajan first took office in September 2013. He is the 23rd governor of the RBI.