Mumbai: The Union government has issued the formal notification for the appointment of Punjab National Bank’s chairman and managing director K.C. Chakrabarty as the deputy governor of Reserve Bank of India (RBI).

It’s official: PNB chairman and MD K.C. Chakrabarty. Ramesh Pathania / Mint

Chakrabarty confirmed the development.

“The notification came on Friday. I will come to Mumbai next week," Chakrabarty said. At present, he is in New Delhi, where Punjab National Bank is headquartered.

Chakrabarty will be replacing V. Leeladhar, who had retired on 8 December. Several bank heads, including Chakrabarty, Bank of India’s T.S. Narayanasami, Union Bank of India’s M.V. Nair, Bank of Baroda’s M.D. Mallya, and IDBI Bank Ltd’s Yogesh Agarwal were interviewed a few months back for the post, following which Chakrabarty and Narayanasami were short-listed for the deputy governor’s post.

RBI has four deputy governors posts. Of them, Rakesh Mohan has quit to teach at Stanford University, US. Mohan’s last day in the RBI is Wednesday.

Chakrabarty is likely to manage the functions relating to information technology, payment and settlement system, and branch licensing, among others.