Reserve Bank of India deputy governor K C Chakrabarty has resigned. He has put in his papers three months before his term is scheduled to end. The reasons for his sudden exit were not known. The government, now in the thick of the general elections, will not be able to find a replacement for him until the election process is over and a new government in in place. Chakrabarty has sought release in April. Chakrabarty, who headed the Indian Bank and the Punjab National Bank before moving to RBI, is known for his outspoken nature and he is credited with imposing the ban on pre-payment charges on home loans and on introducing a penalty for delayed resolution of ATM withdrawal disputes by banks. He was a strong proponent of transparency in banking services and played a big role in putting an end to banks’ lending below their prime lending rate to top corporates.
