Jose Vinals, the IMF's top financial counsellor, said that not enough of the easy money pumped into economies by advanced countries' central banks is going into economic activities that support growth.
The shock announcement came a day after she was grilled for more than 15 hours by a special court in Paris that probes ministerial misconduct
Rajan, a former IMF chief economist, replaced Duvvuri Subbarao as governor of the Reserve Bank of India (RBI), which has been battling to prop up the plummeting rupee and reverse a sharp economic slowdown.