Congress vice president Rahul Gandhi mounted an attack on the NDA government after RBI Governor Raghuram Rajan said no to a second term, saying Prime Minister Narendra Modi has no need for experts like Rajan as he "knows everything".

Gandhi hailed the RBI Governor for steering the Indian economy in "difficult times".

"Thank you Dr Rajan for steering the economy in difficult times. People like you make India great.

"Prime Minister Narendra Modi knows everything. He has no need for experts like Raghuram Rajan," he said on micro-blogging site Twitter.

Buffeted by political attacks coupled with unending speculation over his continuance, Rajan on Saturday said no to a second term in the post, a surprise decision the industry and opposition parties termed as nation's loss.

"... on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016," Rajan said in a message to the RBI staff.