History of the Reserve Bank of India, 1935-51

The Reserve Bank of India is now 35 years old. Relatively to some of the oldest Central Banks, such as the Riksbank of Sweden and the Bank of England which date back to the 17th century, the Reserve Bank is still a very young institution indeed. However, it is one of the oldest central banks in the developing countries. Its formative years have been eventful. Its efforts to adapt central banking functions and techniques to an economy in which modern banking was neither deep-rooted nor widespread, the special responsibilities including those of exchange control that it was called upon to shoulder with the outbreak of World War II in the very first decade of its existence, its transformation from a privately owned institution to a nationalized undertaking, its new role in the economy with the advent of independence -all these make the Bank’s initial years of special interest. The Bank therefore felt that it would not be too soon for a history of its earlier years to be written. 1 Genesis of Central Banking in India 26 2 Currency, Exchange and Banking Prior to 1935 63 3 The Reserve Bank of India Act 105 4 The Beginnings 142 5 Early Central Banking Policies and Operations 175 6 Emerging Role as a Bankers’ Bank 203 7 First Steps in Agricultural Finance 227 8 Governors, Government, Board and Shareholders 250 9 Organisation, Management and Allied Matters 268 10 The Pattern and Consequences of War Financing 312 11 War-Time Central Banking Operations 340 12 Exchange Control 377 13 Repatriation of Sterling Debt 409 14 Participation in Post-War Currency Plans 437 15 Commercial Banking Developments 470 16 Policies in the Sphere of Agricultural Credit 503 17 Changes in the Bank’s Organisation and Status 530 18 The Bank And The Partition 573 19 International Financial Institutions and Sterling Balances 622 20 Exchange Control And Management 668 21 Monetary Management And Allied Issues 713 22 A Commercial Bank Regulation Act At Last 755 23 Progress in the Sphere of Agricultural Credit 797 24 The Bank As An Employer 834