Rajan, 50, will succeed D Subbarao, who by his hawkish policy stood his ground on continuing with a tight monetary policy despite repeated entreaties from the government to ease interest rates to boost growth. Subbarao will demit office on September 4.u00a0

"Prime Minister Manmohan Singh has approved the appointment of Dr Raghuram Rajan as the Governor of Reserve Bank of India (RBI) for a term of three years, vice Dr D Subbarao upon completion of his (Dr Subbarao's) tenure," an official release said.