Thanking deputy governor K C Chakrabarty for his services to the central bank, Reserve Bank governor Raghuram Rajan on Firday said an exercise has been initiated to find his successor.
"The Reserve Bank is very grateful for his many years of excellent work in very difficult times," the central bank said in a statement.
"His experience as a banker has given him the ability to diagnose weaknesses in the system, and made him a forceful advocate for change. I personally have benefited enormously from his advice," Rajan said in the statement.
After 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.
RBI said a search is on for his successor. Of the four deputy governors-- two from within the organisation, one economist and one banker.
Chakrabarty who was appointed as RBI Deputy Governor in 2009, is considered frank with his views.
Chakrabarty always speaks his mind, and has been a very valuable guide for successive governors, it said, adding, "in recent years, Chakrabarty has spearheaded the Reserve Bank's move towards risk-based supervision."
Known for his strong views on the efficacy of CRR (cash reserve ratio) as a tool for monetary management, he reportedly had difference of opinion on 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, which was to end on June 15 this year.