Urjit Patel, Arundhati Bhattacharya among six key names doing the rounds to replace Raghuram Rajan

It's official! Putting an end to a long-drawn speculation over his second term, Reserve Bank of India governor Raghuram Rajan has eventually called it quits. In a letter to RBI staff, Rajan said he will return to academia when his term as governor ends in September.

"On due reflection and after consultation with the government, I want to share that I will be returning to academia when my term as governor ends on September 04, 2016. I will, of course, always be available to serve my country when needed," said Rajan in a letter to RBI staff.

Rajan was appointed as RBI Chief by the previous UPA Government in September 2013.

His decision immediately triggered speculation about his successor and the impact it could have on stock and bond markets when they open on Monday morning.

Finance Minister Arun Jaitley, who had earlier steadfastly refused to discuss in public the issue of a second term for Rajan, welcomed his decision saying he respects it and said the government appreciates his good work.

A decision on successor to Rajan would be announced shortly, he said.

Below are seven top potential candidates who could be the next RBI governor:

1) Urjit Patel

Urjit Patel, the Deputy Governor of Reserve Bank of India, seems to be the top contender given he has closely worked with Rajan and possesses sound expertise on macroeconomic management. However, his less exposure to banking sectors' problems may turn out to be a dampener.

2) KV Kamath

BRICS Bank President K V Kamath has been a most towering personality of Indian private banking sector. As a Chairman of ICICI Bank, Kamath played a crucial role on expanding the retail banking in the country.
   
3) Arundhati Bhattacharya

Arundhati Bhattacharya is the Chairperson of India's largest public sector bank State Bank of India. In 2015, Forbes Magazine listed her as the 30th most influential woman in the world. In 2016, Bhattacharya was elevated by Forbes to the 25th position. If government selects her to replace Rajan, she will become the first woman to hold RBI's top position.

4) Shaktikanta Das

Shaktikanta Das is the Joint Secretary (Budget) in Department of Economic Affairs. The renowned bureaucrat has earlier held the assignment of Secretary, Department of Revenue in the finance ministry and is also a close confider to team Modi.

5) Arvind Subramanian

Hand-picked by NDA government, Arvind Subramanian currently serves as India's Chief Economic Advisor. He is an internationally known economist and could be the top choice for the government to replace Rajan.

6) Arvind Panagariya

Niti Aayog Chief Arvind Panagariya holds a PhD from Princeton University and has served as a Professor of Economics at Columbia University. He has been the chief economist of the Asian Development Bank and has also worked for the World Bank and International Monetary Fund.