KC Chakrabarty, Deputy Governor, Reserve Bank of India, has quit three months ahead of completion of his term.

Chakrabarty was appointed as Deputy Governor in June 2009 for a period of three years. In 2012, he got an extension of two years.

According to RBI insiders, he is likely to take up an overseas assignment.

Nine departments including Supervision, Financial Stability Unit, Urban Banks, Legal, Human Resources, Currency Management, Customer Service and Rural Planning and Credit were reporting to him.

Prior to his appointment as Deputy Governor, Chakrabarty was the Chairman and Managing Director of Punjab National Bank.

Known for his outspokenness, Chakrabarty was stripped of key portfolios in 2010 when he reportedly told journalists off-the-record in New Delhi that the central bank should have been more aggressive in combating inflation. Subsequently, his portfolios were restored.

Under his watch, customer service in the banking system got a fillip. However, Chakrabarty held bankers responsible for bad loans and corporate debt restructuring due to lax appraisal.

Among the contenders for the Deputy Governor’s position that has fallen vacant due to his resignation are the chiefs of: Punjab National Bank (KR Kamath), Bank of Baroda (SS Mundra), Bank of India (Vijayalakshmi Iyer), Canara Bank (RK Dubey) and Indian Overseas Bank (M Narendra).