No differences with Rajan, says Chakrabarty

No differences with Rajan, says Chakrabarty
Reserve Bank Deputy Governor K.C. Chakrabarty on Friday said there was no difference of opinion with the Governor and his resignation was a personal decision.

The 62-year-old career banker, who had opted to quit RBI ahead of his scheduled date of June 15, 2014, said he had already informed RBI Governor Raghuram Rajan about his retirement plans and would remain in office till April 25.

"I think I should have the discretion of deciding my own retirement date. There is no problem. This was communicated to Governor well in advance. It was my personal decision," he told reporters in New Delhi.

On whether there was any difference with Mr. Rajan over policy matters, the outspoken Mr. Chakrabarty said: "There is no such problem... I am taking early relieve. I am not running away."

As regards future plans, he said he will think about it after April 25.

When asked if he was going to meet Finance Minister P. Chidambaram, he said that he reports to the RBI Governor and has conveyed to him the decision to leave RBI. "I think he (Rajan) must have done that thing (to the Finance Minister)," he said.

After Mr. Chakrabarty's exit there will be two vacancies for Deputy Governors in the Central Bank. The government is yet to find a replacement for Anand Sinha who retired in January.

The RBI has four deputy governors - two from within the organisation, one economist and one banker.

Mr. Chakrabarty who was appointed as RBI Deputy Governor in 2009, is considered frank with his views. He was the senior-most among the four deputy governors.

Known for his strong views on the efficacy of CRR (cash reserve ratio) as a tool for monetary management, he reportedly had a difference of opinion over the issue with the then SBI Chairman Pratip Chaudhuri in 2012, who wanted its abolition.

He was appointed as RBI Deputy Governor for a three-year term on June 15, 2009 and was subsequently given a two-year extension.


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