K L Khetarpaul, seniormost executive director of the Reserve Bank of India , has resigned protesting K J Udeshi's elevation to the post of deputy governor. Khetarpaul would have retired in July, while Udeshi's term would have ended in October.

Khetarpaul 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 admitted that he had resigned, but refused to cite any reason for it.

He was attached to the department of banking operations and development, which Udeshi is now overseeing as deputy governor. Both Khetarpaul and Udeshi joined the RBI in 1965.