No differences with RBI: K C Chakrabarty

He said he had communicated to RBI Governor Raghuram Rajan about his plans well in advance

Reserve Bank of India (RBI) Deputy Governor K C Chakrabarty on Friday denied speculations about his resignation ahead of the completion of his term, saying it was purely due to personal reasons.

“Absolutely, there is no problem… It is my personal decision,” Chakrabarty said on the sidelines of an event, when asked whether he put in his papers because of differences with the central bank.

The former banker, who is likely to join a global consultancy firm, however did not discuss his future plans. He said till the time he is with RBI, he would think 24x7 about the institution.

Chakrabarty said he had communicated to RBI Governor Raghuram Rajan his plans well in advance and had asked the latter to relieve him earlier than the scheduled end of his tenure.

In a statement issued on Friday, RBI said Chakrabarty requested a slightly earlier departure (on April 25, 2014) than the scheduled term end, for personal reasons.

“The Reserve Bank is very grateful for his many years of excellent work in very difficult times. Chakrabarty always speaks his mind, and has been a very valuable guide for successive governors,” the statement said.

“I personally have benefited enormously from his advice,” the statement said quoting RBI Governor Raghuram Rajan. The 62-year-old will be with RBI till April 25, while in normal course his term would have ended only by the end of June. In his new job, he is likely to work in the area of risk-based supervision.

The RBI statement added a search is on for Chakrabarty’s  successor. A search panel has already been formed and it will interview five public-sector bank chief executives for the post of deputy governor.

K R Kamath, chairman and managing director (CMD) of Punjab National Bank, Vijayalakshmi Iyer, chairperson and managing director of Bank of India, S S Mundra, CMD of Bank of Baroda, R K Dubey, CMD of Canara Bank, and M Narendra, CMD of Indian Overseas Bank will appear for the interview which will be conducted by the end of the month.

As the election code of conduct is in place, it might have to seek approval of the Election Commission for doing the same. However, if the Commission doesn’t give its approval, the appointment can be done only by the new government.

Chakrabarty was appointed as deputy governor in June 2009 for a period of three years. He was re-appointed in 2012 for a further period of two years. A deputy governor in RBI can be appointed for a maximum of five years or till the age of 62, whichever is earlier.