K L Khetarpaul, the senior-most executive director of
the Reserve Bank of India (RBI), has resigned protesting
against K L Udeshi's elevation to the post of deputy governor.
Khetarpaul was due to retire in July 2003, while Udeshi's
term would have ended in October 2003.
put in his papers on Tuesday seeking voluntary retirement
and his resignation was accepted. This is the first case
of resignation at the top tier of the RBI on the ground
of supersession. Khetarpaul admits that he has resigned,
but refuses to cite any reason for the same.
was attached to the department of banking operations and
development, which Udeshi is now overseeing as a deputy
governor. Both Khetarpaul and Udeshi joined the RBI in