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RBI Dy Governor KC Chakrabarty resigns before end of term

Last Updated: Thursday, March 20, 2014 - 22:19

New Delhi: In a surprise move, Reserve Bank Deputy Governor K C Chakrabarty has resigned three months before his term was to end.

Chakrabarty has "requested to be relieved earlier than the scheduled (term ending June 15, 2014)," a top government source said.

Chakrabarty, 62, who was appointed as RBI Deputy Governor in 2009, could not be contacted as he was travelling.

The source, however, did not say why he has sought an early end to his term.

Chakrabarty was appointed as RBI Deputy Governor for a three-year term on June 15, 2009 and was subsequently given a two-year extension. His extended term was to come to end on June 15, 2014. 

Chakrabarty, according to an official, will remain in office till April 25.

"Chakrabarty has requested for slightly earlier departure than scheduled term-end. He has requested to be relieved by April 25 ... For personal reasons," the official said.

Since his term was ending in June, the Finance Ministry has already set up a search committee, headed by RBI Governor Raghuram Rajan, to find his replacement.

As many as five PSU bankers have been called for interviews for the coveted post.

Chakrabarty's current assignments at RBI include guiding and overseeing areas pertaining to supervision of banks, currency management, financial stability, customer service, rural credit and human resource management.

He is the RBI's nominee on the Financial Stability Board, a global body established to develop and promote implementation of effective regulatory, supervisory and other financial sector policies.

Chakrabarty is also the Chairman of the Bharatiya Reserve Bank Note Mudran. He also heads the Advisory Committee of College of Agricultural Banking (CAB).

Chakrabarty was the CMD of Punjab National Bank and Indian Bank before joining the RBI.

Chakrabarty, known for his strong views on use of CRR (cash reserve ratio) as a tool for monetary management, was involved in verbal duel last year with the then SBI Chairman Pratip Chaudhuri, who wanted its abolition.

First Published: Thursday, March 20, 2014 - 21:04
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