He has the distinction of being one of those who accurately predicted the errors being made by the financial sector prior to the meltdown of 2008 - a statement that was famously dismissed as "slightly Luddite" by Larry Summers, who might soon be his counterpart at the United States Federal Reserve.
However, he takes over at Mint Road at a time when the Reserve Bank of India (RBI) governor's job is even less easy than it is normally; India stands on the brink of economic crisis, and every error he makes could be magnified.
What are the ways he could really make a difference?
And can he put out the fires engulfing the Indian economy?
Here's how Raghuram Rajan could help...
Text: Mihir Sharma, Business Standard
Reuters, PTI Images