List of Governors of the

1. Sir Osborne Smith (1935 – 1937)

2. Sir James Taylor (1937 – 1943)
3. Sir C. D. Deshmukh (1943 – 1949)
4. Sir Benegal Rama Rau (1949 – 1957)
5. K. G. Ambegaonkar (1957)
6. H. V. R. Iyengar (1957 – 1962)
7. P. C. Bhattacharya (1962 – 1967)
8. L. K. Jha (1967 – 1970)
9. B. N. Adarkar (1970)
10. S. Jagannathan (1970 – 1975)
11. N. C. Sen Gupta (1975)
12. K. R. Puri (1975 – 1977)
13. M. Narasimham (1977)
14. Dr. I. G. Patel (1977 – 1982)
15. Dr. Manmohan Singh (1982 – 1985)
16. A. Ghosh (1985)
17. R. N. Malhotra (1985 – 1990)
18. S. Venkitaramanan (1990 – 1992)
19. Dr. C. Rangarajan (December 22, 1992 – November 10, 1997)
20. Dr. Bimal Jalan (November 11, 1997 – September 5, 2003)
21. Dr. Y. Venugopal Reddy (September 6, 2003 – September 5, 2008)
22. Dr. D. Subbarao (September 6, 2008 - Till Date)

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Governors
Few personalities are so close yet so distant to India's
populace as the Governor of the Reserve Bank and few
evocative of his awe and mystique: close, because
virtually every individual, be he ever so poor or so rich,
carries on his person the promise and signature of the
Governor. Distant because central bankers are
traditionally conservative and publicity shy. Awe they
command as the custodian of the country's reserves and
defenders of the external value of the currency. And,
mystique they possess as purveyors of money, the
commodity all desire but so few understand.
Behind the mist, and shorn of the public perception, the
personality of the governor assumes importance in a
specific context, the governor, more than any public or
private functionary in the country, has the mandate of
securing the monetary stability of the country. This
impinges on the day to day life of ordinary citizens.

Sir Osborne Smith 01-04-1935 to 30-

06-1937

Sir Osborne Smith was the first Governor

of the Reserve Bank. A professional
banker, he served for over 20 years with
the Bank of New South Wales and 10
years with the Commonwealth Bank of
Australia before coming to India in 1926
as a Managing Governor of the Imperial
Bank of India.

His stewardship of the Imperial Bank won

him recognition in banking circles in
India. However, his outlook on policy
issues like the exchange rates and
interest rates was at variance with that
of the Government. He resigned prior to
the completion of his term of office of
three and a half years. Sir Osborne,
however, did not sign any bank notes
during his tenure.

Sir James Taylor 01-07-1937 to 17-

02-1943

Sir James Braid Taylor was a member of

the Indian Civil Service and had served
for over a decade in the Currency
Department of the Government of India,
initially as a Deputy Controller, later as
Controller of the Currency, and thereafter
as additional secretary in the Finance
Department. He was closely associated
with the preparation and piloting of the
Reserve Bank of India Bill. He served as
Deputy Governor of the Bank prior to his
appointment as the Governor.

His stewardship saw the Bank through

the war years and the financial
experiments it engendered and
catalysed, including the decisive break
away from a silver currency to fiat
 money. His second term came to an end
with his sudden demise.

Sir C D Deshmukh 11-08-1943 to

30-06-1949

Chintaman Dwarkanath Deshmukh, a

member of the Indian Civil Service, was
the first Indian Governor of the Bank. His
association with the Bank commenced in
1939, when he was appointed
Government’s liason officer. He later
served as Secretary and thereafter in
1941 as Deputy Governor of the Bank.
On the demise of James Taylor, he took
over stewardship of the Bank and was
appointed Governor in August, 1943.

During his tenure as Governor, he

represented India at the Bretton Woods
negotiations in 1944, saw the transition
to Independence and the partition of the
country and the division of the assets
and liabilities of the Reserve Bank
between India and Pakistan. He helped
the smooth transition of the Bank from a
shareholder’s institution to a State owned
organisation, when the Bank was
nationalised on 1st January 1949. He
later held the office of Union Finance
Minister between 1950-56.

Sir Benegal Rama Rau 01-07-1949 to 14-

01-1957

Sir Benegal Rama Rau, a member of the

Indian Civil Service, was the longest
serving Governor of the Bank. Prior to
joining the Bank he served as the Indian
Ambassador to the United States.

His tenure witnessed the commencement

of the Planning Era as well innovative
initiatives in the spheres of co-operative
credit and industrial finance. The
recommendations of the All India Rural
Credit Survey Committee appointed
during his tenure led to the
transformation of the Imperial Bank of
India to State Bank of India. The
proportional reserve system of note issue
 was replaced by a minimum reserve
system to give the Bank greater
flexibility.

He resigned in the middle of January

1957 before his second extended term of
office expired due to differences with the
Finance Minister.

K G Ambegaonkar 14-01-1957 to
28-02-1957

K. G. Ambegaokar, a member of the

Indian Civil Service, served as Finance
Secretary prior to his appointment as
Deputy Governor. On the resignation of
B. Rama Rau, he was appointed as the
interim Governor till H V R Iengar could
take over.

He forged closer connections between

agricultural enterprise and the Reserve
Bank’s operations. K G Ambegaonkar did
not sign any bank notes.

H V R Iengar 01-03-1957 to 28-

02-1962

H V R Iengar, a member of the Indian

Civil Service, served for a brief while as
the Chairman of State Bank of India,
before being appointed as the Governor
of the Reserve Bank.

His tenure witnessed India’s shift to

decimal coinage from the earlier system.
The period saw conscious efforts to
consolidate the banking industry. The
Bank acquired powers in September
1960 to enforce amalgamations and
delicensing of banks. The Bank was also
active in catalysing medium term lending
to industry by commercial banks by
invoking the concept of refinance which
led to the establishment of the Refinance
Corporation for Industry Ltd. Deposit
Insurance for bank deposits was
introduced in 1962 making India one of
the earliest countries to experiment with
Deposit Insurance. In the sphere of
monetary policy, the variable cash
 reserve ratio was used for the first time
as were the selective credit controls.

P C Bhattacharya 01-03-1962 to
30-06-1967

P C Bhattacharya, a member of the

Indian Audit and Account Service, served
as Secretary in the Finance Ministry and
later as Chairman of the State Bank of
India prior to his appointment as
Governor.

His tenure saw the establishment of the

Industrial Development Bank of India
(1964), and the establishment of the
Agricultural Refinance Corporation (1963)
and the Unit Trust of India (1964).

Other developments were the

introduction of the Credit Authorisation
Scheme as an instrument of Credit
Regulation, the devaluation of the Rupee
in 1966, with a package of measures
including import liberalisation and
elimination of export subsidies.

L K Jha 01-07-1967 to 03-

05-1970

L K Jha, a member of the Indian Civil

Service, served as Secretary to the Prime
Minister, prior to his appointment as
Governor.

During his tenure,social controls over

commercial banks were introduced as an
experiment in 1968, as a part of which a
National Credit Council was established.
Shortly thereafter, 14 major commercial
banks were nationalised in 1969, a step
which did not have the endorsement of
the Reserve Bank.

Amongst other developments, gold

controls were brought on a statutory
basis; Deposit Insurance was in principle
extended to Cooperative banks; the Lead
Bank Scheme was introduced to facilitate
credit delivery, and the setting up of the
Agricultural Credit Board.L K Jha was
 appointed India’s Ambassador to the
United States in May 1970 prior to the
completion of his term as Governor.

B N Adarkar 04-05-1970 to 15-

06-1970

B N Adarkar held the post of Governor

during the interregnum till S
Jagannathan could take over as
Governor.

He was a professional economist and

served for many years in the office of the
Economic Adviser of the Government of
India and also held important positions in
the Ministry of Commerce & Industry
prior to his appointment as the Deputy
Governor of the Bank.

He also served as India’s Executive

Director at the IMF and as Deputy
Governor, he played an active role in the
establishment of the National Institute of
Bank Management.

S Jagannathan 16-06-1970 to
19-05-1975

S Jagannathan was a member of the

Indian Audit and Accounts Service. He
had served with the Central Government
and thereafter as India’s Executive
Director at the World Bank, prior to being
appointed as the Governor.

His tenure of office was characterised by

a very active monetary policy in the wake
of unprecedented inflation in the country
following the oil shock, an exponential
expansion of banking offices in pursuance
of one of the important objectives of
nationalisation; the establishment of
Credit Guarantee Corporation of India,
the setting up of State Level Bankers’
Committees and the shift to floating rates
regime.

He relinquished office to take up the post

of the Indian Executive Director at the
IMF.
N C Sen Gupta 19-05-1975 to 19-
08-1975

N C Sen Gupta was appointed Governor

for three months till K R Puri could
assume office.

Prior to his appointment as the Governor,

he was working as Secretary to the
Department of Banking of the Ministry of
Finance.

K R Puri 20-08-1975 to 02-

05-1977

K R Puri served as the Chairman and

Managing Director of the Life Insurance
Corporation of India before his
appointment as Governor.

During his tenure, Regional Rural Banks

were set up; the Asian Clearing Union
commenced operations; the twenty point
economic programme was announced
and operationalised and a new money
supply series introduced.

M Narasimham 02-05-1977 to
30-11-1977

M Narasimham was the first and so far

the only Governor to be appointed from
the Reserve Bank cadre, having joined
the Bank as a Research Officer in the
Economic Department. He later joined
the Government and prior to his
appointment as Governor he served as
Additional Secretary, Department of
Economic Affairs.

He had a short tenure of seven months.

He later served as Executive Director for
India at the World Bank and thereafter at
the IMF after which he served in the
Ministry of Finance as Secretary. He was
chairperson of the Committee on the
Financial System, 1991 and the
Committee of Banking Sector Reforms,
1998.
 Dr. I G Patel 01-12-1977 to 15-
09-1982

Dr. I G Patel an economist and

administrator, joined the Reserve Bank
as Governor after serving as Secretary in
the Ministry of Finance and thereafter at
the UNDP.

His tenure witnessed the demonetisation

of high denomination notes as well as the
‘gold auctions’ conducted by the Bank on
behalf of Government of India. During his
tenure six private sector banks were
nationalised, targets for priority sector
lending introduced, and the Deposit
Insurance and Credit Guarantee
Corporations were merged, and a
Departmental reorganisation was
undertaken in the Bank. He played an
active role in availing of the IMF’s
Extended Fund Facility in 1981 due to
balance of payments difficulties. This
represented the largest arrangement in
IMF’s history at the time.

Dr. Manmohan Singh 16-09-1982 to

14-01-1985

Dr Manmohan Singh, academic and

administrator, had served as Secretary
Finance as well as Member Secretary of
the Planning Commission prior to his
appointment as Governor,

During his tenure comprehensive legal

reforms were carried out related to the
banking sector and a new chapter
introduced in the Reserve Bank of India
Act and the Urban Banks Department
was set up.

After his tenure in the Bank, he served in

various capacities before being appointed
Finance Minister. His tenure as Finance
Minister was notable for the fact that he
heralded in liberalisation and
comprehensive reforms in India.

A Ghosh 15-01-1985 to 04-

02-1985
 A Ghosh was the Deputy Governor of the
Bank since 1982 when he was appointed
Governor for a brief period of 15 days till
R N Malhotra could take over. He was
earlier the chairman of Allahabad Bank
prior to his appointment as the Deputy
Governor of the Bank. He was also a
Director of the Industrial Development
Bank of India and the governing body of
the National Institute of Bank
Management.

R N Malhotra 04-02-1985 to 22-

12-1990

R.N. Malhotra, a member of the Indian

Administrative Service, served as
Secretary, Finance and Executive
Director of the IMF. prior to his
appointment as Governor.

During his tenure efforts were made to

develop the money markets and new
instruments were introduced. The
Discount and Finance House of India, the
National Housing Bank were set up and
the Indira Gandhi Institute of
Development Research inaugurated. In
the field of rural finance, the Service
Area Approach was adopted as an
approach catalyse the flow of credit
through commercial banks.

S Venkitaramanan 22-12-1990 to
21-12-1992

S Venkitaramanan, a member of the

Indian Administrative Service, had
served as Finance Secretary and adviser
to the Government of Karnataka prior to
his appointment as Governor.

The country faced difficulties related to

the external sector during his tenure. His
adroit management saw the country tide
over the balance of payments crisis. His
term also saw India adopt the IMF’s
stabilisation programme where the Rupee
underwent a devaluation and the launch
of the programme of economic reforms.

Dr.C Rangarajan 22-12-1992 to

 21-12-1997

Dr. C Rangarajan was a professional

economist. Prior to his appointment as
the Governor, he held charge as Deputy
Governor for over a decade. He was also
a member of the Planning Commission
and a member of the Tenth Finance
Commission.

His tenure as Governor saw

unprecedented central bank activism to
put in place a comprehensive set of
measures to strengthen and improve the
competitive efficiency of the financial
sector. New institutions and instruments
were introduced and changes in
exchange rate management culminated
in the establishment of a unified
exchange rate. In the field of monetary
policy, his tenure saw the historic
memorandum signed between the Bank
and the Government whereby a cap was
put on the automatic finance by the Bank
to the Government in the form of ad hoc
treasury bills.

Dr. Bimal Jalan 22-11-1997 to 06-

09-2003

Dr. Bimal Jalan, served as Chief

Economic Advisor to Government of
India, Banking Secretary, Finance
Secretary, Member Secretary of Planning
Commission, and Chairman of the
Economic Advisory Council to the Prime
Minister prior to being appointed as
Governor. He had also represented India
on the Executive Boards of the IMF and
the World Bank.

During his tenure, India weathered the

Asian Crisis and has seen the
consolidation of the gains of liberalisation
and economic reforms. The monetary
policy process was demystified and
central bank communications marked a
perceived shift towards transparency.

This period has seen a slew of measures

to strengthen the banking sector,
establish new institutions and introduce
new instruments. The period has been
 characterised by the strengthning of the
balance of payments and forex
position,low inflation and soft interest
rates.

Dr. Y V Reddy 06-09-2003 to

date

Dr. Yaga Venugopal Reddy the twenty-

first Governor, is a member of the Indian
Administrative Service. He has spent
most of his career in the areas of finance
and planning. He served as Secretary
(Banking) in Ministry of Finance,
Additional Secretary, Ministry of
Commerce, Joint Secretary in Ministry of
Finance in Government of India, Principal
Secretary, Government of Andhra
Pradesh and had a a six year tenure as
Deputy Governor of the Reserve Bank of
India. Prior to his appointment as the
Governor, Dr. Reddy was India's
Executive Director on the Board of the
International Monetary Fund.

Dr. Reddy has made significant policy

contributions in the areas of financial
sector reforms; trade finance; monitoring
of balance of payments and exchange
rate; external commercial borrowings;
centre-state financial relations; regional
planning; and public enterprise reform
and has been closely associated with
institution building. He has several
publications to his credit mainly in areas
relating to finance, planning and public
enterprises.

Top
Chronology of Events
The Beginnings - 1926 to 1935

Date Event
1926 Royal Commission on Indian Currency (Hilton Young Commission)
recommends the establishment of a central bank to be called the
'Reserve Bank of India'.
1931 Indian Central Banking Enquiry Committee revives the issue of the
establishment of the Reserve Bank of India as the Central Bank for India.
5 March Reserve Bank of India Act, 1934, (II of 1934) constitutes the statutory
1934 basis on which the Bank is established.

Chronology of Events
The Early Years - 1935 to 1949

Date Event
1 Apr 1935 Reserve Bank of India commences operations. Sir Osborne Smith the
first Governor of the Bank. The Bank was constituted as a shareholders'
bank.
5 Jul 1935 Scheduled banks required to maintain the Cash Reserve Ratio, i.e., hold
cash balances with the RBI equivalent to 5% of their Demand Liabilities
and 2% of their Time Liabilities.
Oct 1935 London Office of the Reserve Bank set up. This was closed on September
30, 1963.
1 Nov 1936 Resignation of the first Governor, Sir Osborne Smith, wef July 1, 1937.
15 Jan 1937 Indian Companies (Amendment) Act, 1936 devotes a separate chapter
exclusively to Banks.
1 July 1937 Sir James Braid Taylor assumes office as Governor.
1937 RBI acts as banker to the Government of Burma and also responsible for
note issue in Burma.
Jan 1938 First Reserve Bank notes issued.
21 Jun 1938 The Failure of the Travancore National and Quilon Bank, the largest bank
in the Travancore region, underlined the need for comprehensive
banking reform and legislation.
3 Sep 1939 Introduction of Exchange Controls in India under Defence of India Rules.
11 Mar RBI Accounting Year changed from Jan-Dec to July-June.
1940
1940 The silver rupee replaced by the quarternary alloy rupee. One Rupee
 note reintroduced. This note had the status of a rupee coin and
represented the introduction of official fiat money in India.
11 Aug Sir C. D. Deshmukh assumes office of Governor.
1943
1944 The security thread on notes introduced for the first time in India as a
security feature.
1944 Laws relating to Government securities and to the management of Public
Debt by the Reserve Bank of India consolidated on the basis of the Public
Debt Act, 1944.
26 May Speculative activity in the financial and bullion markets. Defence of India
1945 Rules invoked to authorise the Reserve Bank to collect information from
banks in respect of advances. This was to check advances against bullion
for speculation.
9 Jun 1945 Reserve Bank of India entrusted with the Currency & Coinage of the
British Military Administration of Burma as well as Banker to BMA.
12 Jan 1946 High Denomination Bank Notes of Rs 500, Rs 1000 and Rs 10,000
Demonetised to curb unaccounted money.
1946 Interim arrangements for Bank Supervision were put in place by
ordinances which were later replaced by the Banking Companies Act,
1949. These Ordinances empowered the Reserve Bank to inspect banks,
as well as authorise the licensing of bank branches.
30 Jun 1948 RBI ceased to function as the Central Bank of Pakistan. State Bank of
Pakistan commenced operations wef July 1, 1949.
1 Jan 1949 Reserve Bank of India nationalised.
16 Mar Coming into force of the Banking Companies Act, 1949. This formed the
1949 statutory basis of bank supervision and regulation in India.
The Statutory Liquidity Ratio (SLR) requiring banks to maintain liquid
assets was introduced for the first time. The Banking Companies Act was
later renamed the Banking Regulation Act.
1 Jul 1949 Sir Benegal Rama Rau assumes office as Governor
19 Sep Rupee devalued by 30.5 % as a defensive measure consequent to the
1949 devaluation by other 'sterling area' countries.

Chronology of Events
Republic India: Towards a Planned Economy - 1950 to 1960

Date Event
Oct 1950 Department of Banking Development created together with the new post
of Executive Director.
1951 Reserve Bank of India (Amendment) Act, 1951 enabled the Bank to
become Banker to Part B states after executing agreements with them.
First Five Year Plan launched.
1 Jan 1952 Bill Market Scheme introduced to enable banks to obtain advances from
the Reserve Bank against self liquidating bills. It was aimed at allowing
currency to expand to meet seasonal requirements.
1 Aug 1952 State Financial Corporations Act, 1951 came into effect. It Enabled state
governments to establish Financial corporations for meeting the credit
needs of medium and small scale industries. Bank’s Holdings of the
capital of SFCs taken over by the IDBI in 1976.
Aug 1954 All-India Rural Credit Survey Committee Report submitted. Its
recommendations led to bringing rural credit onto the centre stage of
central bank activism. Led to the formation of the State Bank of India.
14 Sep Bankers’ Training College to provide training to banking personnel
1954 established at Bombay (Mumbai) inaugurated.
1 Apr 1955 Hali Sicca Rupees which had a circulation of about OS 48 crores ceased
to be legal tender in the erstwhile Hyderabad State. These were replaced
by Indian Rupees.
1 Jul 1955 Imperial Bank of India converted to a state owned institution, State
Bank of India on July 1, 1955. One of the immediate objectives was to
establish additional branches particularly at district headquarters. It was
also expected to provide remittance and other facilities to co-operative
and other banks and attempt to mobilise rural savings.
Second Five Year Plan commences
17 May Selective Credit Controls were deployed for first time.
1956
6 Oct 1956 System of Note Issue changed from Proportional Reserve System
requiring the Reserve Bank to maintain 40% gold and forex reserves
against note issue to a minimum reserve system. This was to enable the
expanding currency requirements of the economy to be met.
14 Jan 1957 Resignation of Governor, Sir Benegal Rama Rau.
14 Jan 1957 K.G. Ambegaonkar appointed governor till February 28th.
1 Mar 1957 HVR Iengar appointed governor
31 Oct 1957 Minimum reserves against note issue relaxed further.
1959 State Bank of India (Subsidiary Banks) Act, 1959 made the banks of the
erstwhile Princely Sates of India the subsidiaries of the State Bank of
India. These were The Bank of Bikaner, The Bank of Jaipur, The Bank of
Indore. The Bank of Mysore, The Bank of Patiala, The Bank of
Hyderabad, The Bank of Saurashtra and The Bank of Travancore were
made subsidiaries of The State Bank of India. The Bank of Bikaner and
The Bank of Jaipur were amalgamated in 1963 to form the State Bank of
Bikaner and Jaipur.

Chronology of Events
Institution Building - 1960 to 1971

Date Event
May 1960 The failure of Laxmi Bank and the subsequent failure of the Palai Central
Bank catalyzed the introduction of deposit insurance in India.
1960 Policy of reconstruction / compulsory amalgamation of banks introduced
to consolidate the Banking sector. Powers to do so acquired by RBI Act
amendment.
Between 1960 to 1982 over 200 banks were merged or liquidated.
1961 Third Five Year Plan commences.
7 Dec 1961 Deposit Insurance introduced in India as a depositor protection measure.
It was intended to increase the confidence of the depositors in the
banking system, to facilitate the mobilisiation of deposits and promote
greater stability and growth of the banking system.
15 May The Reserve Bank of India Act, 1934, the Indian Coinage Act, 1906 and
1962 the Currency Ordinance, 1940 extended to Goa, Daman and Diu
consequent to their liberation.
1 Mar 1962 P.C. Bhattacharyya appointed Governor.
May 1962 New Bank Branch Licensing policy laid stress on opening of offices in
‘unbanked’ and ‘underdeveloped’ areas.
16 Sep 1962 Cash Reserve Ratio of banks was fixed uniformly at 3 % of their Demand
and Time Liabilities with the flexibility to vary it between 3 and 15%.
1962 Chapter IIIA incorporated in RBI Act empowered the Bank to collect
information in regard to credit facilities granted by individual banks and
notified financial institutions to their constituents. 1974 the scope of the
term credit information was enlarged to cover the means antecedents,
history of financial transactions and the creditworthiness of any borrower
or class of borrowers.
1962 The Banking Regulation Act amended. Scheduled Banks to maintain
minimum liquid assets (SLR) of not less than 25% of the Demand and
Time Liabilities.
1 Jul 1962 Agricultural Refinance Corporation (ARC) set up to provide Refinance to
central land mortgage banks, state coop banks, scheduled commercial
banks who were shareholders.
26 Aug Staff Training College established at Madras started a pilot course
1963 representing one of the early HRD endeavours in the services sector.
1 Feb 1964 RBI empowered to regulate the deposit acceptance activities of non
banking institutions. New chapter IIIB inserted in RBI Act.
Feb 1964 Unit Trust of India established to extend facilities for an equity type
investment to small investors and also mobilize resources and channel
them into investments so as to facilitate the growth of the economy.
Commenced operations in July 1964.
1 Jul 1964 IDBI established as a subsidiary of the Reserve Bank of India with the
purpose of providing long term industrial finance. Took over business of
 Refinance Corporation for Industry in September, 1964.
20 Nov Credit Regulation introduced to align the growth of bank credit with Plan
1965 requirements. Later evolved into the Credit Authorisation Scheme (CAS).
1 Mar 1966 Operations of co-operative banking system brought under the regulatory
ambit of the RBI. Banking Laws.
Mar 1966 A new Department of Non Banking Companies established at RBI
Calcutta.
6 Jun 1966 Rupee devalued by 36.5 %
The US Dollar which earlier was equivalent to Rs 4.75 now rose to Rs
7.50.
2 Jul 1966 12 State Cooperative Banks included in Second Schedule of RBI Act.
17 Apr 1967 Size of Bank notes reduced.
1 Jul 1967 L.K. Jha appointed governor.

Chronology of Events
Social Controls, the Nationalisation of Banks and
the era of bank expansion - 1968 to 1985

Date Event
Dec 1967 Introduction of Social Controls over banks with a view to securing a
better alignment of the banking system to the needs of economic policy.
22 Dec National Credit Council set up to provide a forum to discuss and assess
1967 credit priorities on an all India basis. Council was to assist RBI and
government to allocate credit.
01 Apr 1968 Quarternary Alloy Rupee Coins demonetised.
01 Sep Gold (Control) Act passed to bring the administration of the control on a
1968 permanent statutory footing.
(see: 1966 Gold Control Rules)
1968 Export Credit (Interest Subsidy) Scheme, 1968 introduced to promote
exports. Pre-shipment Credit Scheme introduced wef Jan 1969 as an
export promotion measure. This allowed banks to get refinance from the
Reserve Bank.
29 Jan 1969 Setting up of the Banking Commission by GOI to report on (i) Banking
costs; ( ii) legislations affecting banking; (iii) indigenous banking; (iv)
bank procedures; (v) non banking financial intermediaries.
01 Feb Gold Holdings of RBI revalued at the current official IMF rate of
1969 0.118489 grammes of fine gold per rupee (to take into account the
devaluation of the Rupee by 36.5 % in June 1966) The profit on
revaluation transferred to the reserve fund.
19 Jul 1969 14 major Indian Scheduled Commercial Banks with deposits of over Rs
50 crores nationalised ' to serve better the needs of development of the
 economy in conformity with national policy objectives'.
On February 10, 1970 the Supreme Court held the Act void mainly on
the grounds that it was discriminatory against the 14 banks and that the
compensation proposed to be paid by Govt was not fair compensation.
A fresh Ordinance was issued on February 14 which was later replaced
by the Banking Companies (Acquisition and Transfer of Undertakings )
Act, 1970.
(5 of 1970).
24 Sep National Institute of Bank Management (NIBM) established at Bombay
1969 (Mumbai). Shifted to its Pune campus in the mid 1980s.
29 Sep Cooperative Bankers Training College (CBTC) established at Poona
1969 (Pune) to provide training to the cooperative sector. Later renamed
College of Agricultural Banking (CAB) in 1974.
Dec 1969 Lead Bank Scheme introduced which envisaged an area approach to
banking to meet the credit gaps in the economy.
01 Jan 1970 Special Drawing Rights (SDR) created by the IMF to enhance
international liquidity.
Jan 1970 RBI prescribed for the first time the minimum interest rate to be
charged by banks on advances against sensitive commodities.
Feb 1970 The Agricultural Credit Board set up with Governor as Chairman to
formulate and review policies in the sphere of rural credit.
03 Apr 1970 The Managing Agency system abolished by the Companies Amendment
Act, 1969.
04 May B.N. Adarkar appointed Governor till June 15
1970
16 Jun 1970 S. Jagannathan appointed Governor.
Between Inflationary trends led to concern and strong measures including
Feb & Aug increasing bank rate and raising SLR from 25 to 28%.
1970
01 Nov New Bills Rediscounting Scheme introduced was expected to impart
1970 flexibility to the Money Market, even out liquidity within the banking
system and enable the Reserve Bank to exercise more effective control
over the money market.
14 Jan 1971 Credit Guarantee Corporation of India Ltd. established. To facilitate bank
lendings to the priority sectors. It guaranteed credit extended by
scheduled commercial banks to small borrowers and for other priorty
purposes.
12 Apr 1971 Concerns related to Industrial sickness led to the establishment of the
Industrial Reconstruction Corporation of India Ltd.
01 Jul 1971 Deposit Insurance cover extended to cooperative banks.
15 Aug Convertibility of USD suspended. This brought to an end the system of
1971 fixed exchange rates embodied in the Bretton Woods System. After an
interim arrangement which lasted up to 1973, the world shifted to a
 floating exchange rate regime.
Oct 1971 State Level Bankers’ Committees set up to consider problems requiring
inter-bank coordination.
Hindi Version of RBI Annual Report and Trend and Progress of Banking
in India for the year ended 30 June, 1971.
25 Mar Differential Interest Rate Scheme Introduced which envisaged
1972 concessional interest rates on advances made by Public Sector Banks to
selected low income groups.
03 Apr 1972 Import Policy for 72-73 stressed the importance of achieving self
reliance reflecting the views of the times.
03 Nov Special payment arrangements with the erstwhile COMECON group of
1972 countries where payments were settled in rupees through bilateral trade
which was a type of barter arrangement.
1973 "Oil Shock" when oil prices quadrupled. This led to double digit inflation
as well as global recession.
As a response the Bank deployed a series of restricted measures to
contain / moderate the expansion of bank credit.
Call money rate rose to an all time high of 30% prompting the Indian
Banks' Association to intervene and fix a ceiling of 15%.
01 Sep Miscellaneous Non Banking Companies (Reserve Bank) Direction, 1973
1973 sought to regulate the acceptance of deposits by companies conducting
prize chits, lucky draws savings schemes, etc.
08 Sep Quantitative credit ceiling on non food bank credit prescribed for the first
1973 time for the busy season of 1973-74.
Nov 1973 Restrictions on SBI and its subsidiaries removed to bring them on par
with other commercial banks.
01 Jan 1974 Foreign Exchange Regulation Act, 1973 came into force to conserve
foreign exchange. Its administration was entrusted to the Reserve Bank.
09 Dec Asian Clearing Union (ACU) established to facilitate payments for current
1974 international transactions on a multilateral basis. Clearing operations
were to be denominated in member’s currency or AMU which would be
equivalent to 1 SDR. Clearing operations commenced November, 1975.
13 Dec Reserve Bank of India (Amendment) Act, 1974 widened the powers of
1974 the Bank.
19 May N. C. Sengupta appointed governor up to August 19.
1975
09 Aug Tandon Committee Report emphasized need to correlate bank credit to
1975 the business/ production plans and own resources of borrowers. Entailed
a shift from ‘security based’ to ‘need based’ approach to bank credit.
The new norms formed the basis of bank lending for working capital
requirements.
20 Aug K.R. Puri appointed governor
1975
25 Sep Exchange value of Rupee linked to movements in a basket of selected
1975 foreign currencies (major trading partners)
26 Sep Regional Rural Banks were set up as alternative agencies to provide
1975 credit to rural people in the context of the 20 Point Programme.These
were expected to "combine the rural touch and local feel, ……with the
modern business organisation…”.
01 Nov Foreign Currency (Non Resident) Account Scheme introduced in USD
1975 and GBP To encourage private remittance from abroad.
16 Nov Agricultural Refinance Corporation (ARC) renamed Agricultural Refinance
1975 and Development Corporation (ARDC) and its activities widened.
1975 20 point economic programme introduced.
01 Feb Duty Draw back credit scheme introduced as an export promotion
1976 measure.
1976 Village Adoption Scheme for banks introduced.
Apr 1977 A new series of Money supply introduced the concepts of M1, M2, M3
etc. Money supply with the public consisted of
(a) currency with the public,
(b) demand deposits of all commercial banks, of state, central and urban
cooperative banks and of salary earners societies, and
(c) ‘Other deposits with Reserve Bank of India’.
02 May M. Narasimham appointed Governor up to November 30.
1977
1977 Integrated Rural Development Programme (IRDP) initiated as a poverty
alleviation measure.
01 Dec I.G. Patel appointed Governor.
1977
16 Jan 1978 Notes of Rs 1,000/-, Rs 5,000/- and Rs 10,000/- denominations
demonetised to curb ‘the illicit transfer of money for financing
transactions which are harmful to the national economy…’.
03 May RBI commenced gold auctions on behalf of Government of India out of
1978 government stock at fortnightly intervals.
27 May The Deposit Insurance Corporation (DIC) took over the undertaking of
1978 the Credit Guarantee Corporation of India Ltd. (CGCI) to form the
Deposit Insurance and Credit Guarantee Corporation (DICGC) wef July
15, 1978.
03 June RBI Act amended. The amendments were made mainly to enable the
1978 more effective utilization of foreign exchange reserves.
12 Dec Prize Chit and Money Circulation Schemes (Banning) Act, 1978 came
1978 into force wef 12 December, 1978.
1978 Annual Appraisal of Banks introduced in the nature of management audit
introduced. Emphasis mainly on the examination of the organizational
set-up, manpower planning , machinery for supervision and control over
branches, systems & procedures in key areas, funds management and
 management of credit.
30 Mar Penalty for non-compliance of CRR & SLR introduced to give the Reserve
1979 Bank teeth to implement Monetary Policy measures more effectively.
1979 Rural Planning and Credit Cell set up in the Reserve Bank of India to
ensure proper implementation of the multi-agency approach to credit in
rural areas.
Aug 1979 Credit Information Review started being published every month To
disseminate in simple language and without delay the credit and banking
policy decisions of the Reserve Bank.
17 Jan 1980 International gold prices soar to all time highs.
Mar 1980 Banks required to provide financial support to implementation of 20
point programme to improve lot of weaker sections.
Sixth Five Year Plan.
15 Apr 1980 Six private sector banks nationalised “…in order further control the
heights of the economy, to meet progressively, and serve better, the
needs of the development of the economy and to promote the welfare of
the people in conformity with the policy of the State…”
Dec 1980 Recommendations of Chore Committee related to the cash credit
system, adopted. Emphasis on increasing contribution for working
capital requirements by borrowers out of internal resources.
01 Jan 1981 Neighbourhood Travel Scheme (NTS) introduced.
15 Jan 1981 GOI announced special bearer bond To mop up unaccounted money and
channelise it to productive purposes.
Apr 1981 Major Organisational internal restructuring in the Reserve Bank. New
Departments set up.
1981 Build up of inflationary pressures and adverse movement in foreign
trade following the hike in oil prices. Bank rate raised to 10%, CRR
raised to 7.5%, SLR to 35%.
11 Juy 1981 Ordinance prohibiting companies (including Banking Companies)
cooperative societies, firms, to repay any person any deposit otherwise
than by an account payee cheque / bank draft when such repayment
amounted to Rs. 10,000 or more.
01 Jan 1982 Export Import Bank of India established with the objective of providing
comprehensive package of financial and allied services to exporters and
importers.
01 Jan 1982 New 20 point programme announced by the PM.
12 July National Bank for Agriculture and Rural Development (NABARD)
1982 established on the basis of the National Bank for Agriculture and Rural
Development Act, 1981. ‘…For providing credit for the promotion of
agriculture, small scale industries, cottage and village industries,
handicrafts, and other rural crafts for promoting integrated rural
development and securing rural prosperity…’.
16 Sep Manmohan Singh appointed Governor.
1982
1983 C D Deshmukh Memorial Lecture introduced as an annual event in
Governor Deshmukh's honour
Nov 1983 National Clearing Cell (NCC) set up by the bank to introduce mechanised
cheque processing and the national clearing of cheques.
12 Jan 1984 Banking Laws (Amendment) Act, 1983 widened the activities that banks
could undertake (such as leasing), provided nomination facilities to
account holders, strengthened the powers of the Reserve Bank,
streamlined returns and prohibited unincorporated bodies from
accepting deposits from the public except to a specified extent amongst
others.
01 Feb Urban Banks Department formed to supervise the affairs of Urban
1984 Cooperative Banks.
01 May Authorised capital of the Deposit Insurance and Credit Guarantee
1984 Corporation raised to Rs 50 crores
15 Jan 1985 A Ghosh appointed Governor up to February 4
04 Feb RN Malhotra appointed Governor
1985

Chronology of Events
Developing the Markets : Seeds of Liberalisation - 1985 to 1991

Date Event
10 Apr 1985 S. Chakravarty Committee was set up to review the working of monetary
system. Its recommendations had far reaching consequences.
1985 By mid-1985, the statutory preemption on banks' resources in the form
of the Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR)
exceeded 45%.
Nov 1986 182 day TB introduced.
Jan 1987 Board for Industrial and Financial Reconstruction set up and became
operational wef May 1987 reflecting concerns related to Industrial
Sickness.
Mar 1987 Magnetic Ink Character Recognition (MICR) technology introduced for
cheque clearing. Efforts at mechanising cheque clearing operations.
28 Dec Indira Gandhi Institute of Development Research (IGIDR) was
1987 established by Reserve Bank as an advanced studies institute to promote
research on Development issues from a multi-disciplinary point of view.
Apr 1988 Security & Exchange Board of India (SEBI) established to deal with the
development and regulation of the securities market and investor
protection.
Apr 1988 The Discount and Finance House of India, set up as a money market
institution, commenced operations.
Jul 1988 The National Housing Bank established as an apex body of housing
finance and to promote activities in housing development.
Aug 1988 Stock Holding Corporation of India Ltd. (SHCIL) a depository institution
commenced operations.
Oct 1988 Maximum lending rate abolished. Banks free to charge customers
according to their credit record.
Mar 1989 Certificates of Deposit (CDs) and Commercial Paper (CPs) introduced in
India to widen the monetary instruments and give investors greater
flexibility.
Apr 1989 Banking, Public Financial Institution and Negotiable Instruments Laws
(Amendment) Act, 1988 enacted to encourage the culture of use of
cheques in India. It introduced penalties for the dishonour of cheques.
Apr 1989 Service Area Approach for rural lending became operational.
1 Jul 1989 CRR raised to 15 per cent taking statutory preemptions of banks'
resources in the form of the Statutory Liquidity Ratio (SLR) and the Cash
Reserve Ratio (CRR) to over 53%.
15 May Agriculture and Rural Debt Relief Scheme, 1990 providing debt relief
1990 upto Rs 10,000 to small borrowers from Public Sector Banks and
Regional Rural Banks announced.
22 Dec S. Venkitaramanan Governor.
1990

Chronology of Events
Crisis and Reforms - 1991 to 2000

Date Event
1 & 3 Jul External Payments Crisis. Rupee Devalued in two stages.
1991 Cumulative devaluation about 18 percent in USD terms.
Nov 1991 The Narsimahmam Committee Report suggested far
reaching reforms in the Indian Banking sector. These
included a phased reduction in the SLR and CRR as well as
accounting standards, income recognition norms and capital
adequacy norms.
Mar 1992 A dual exchange rate system called Liberalised Exchange
Rate Management System (LERMS) introduced. This was the
initial step to enable a transition to a market determined
exchange rate system.
Apr 1992 Income recognition and asset classification norms
introduced. Provisioning and Capital adequacy standards
specified. Indian Banks required to fulfill these norms by
1994 and 1996.
22 Dec C. Rangarajan appointed Governor.
1992
1992 SEBI formulated ‘Insider Trading Regulations’.
1993 Unified Exchange rate.
1993 Guidelines for the establishment of private sector banks
issued. This heralds a new policy approach aimed at
fostering greater competition.
15 Jul Nationalised Banks allowed to tap the capital market to
1994 strengthen their capital base.
Jun 1994 National Stock Exchange commenced operations
1994 ‘Committee on Reform of the Insurance Sector’, RN
Malhotra.
Aug 1994 Rupee made convertible on the Current Account. Acceptance
of Article VIII of the Articles of Agreement of the IMF.
Oct 1994 Lending rates of commercial banks deregulated. Banks
required to declare their Prime Lending Rates (PLR).
3 Feb Bharatiya Reserve Bank Note Mudran Limited established as
1995 a fully owned subsidiary of the Reserve bank. Commenced
printing of Notes at Mysore on June 1 and at Salboni on
December 11.
Jun 1995 The Office of the Banking Ombudsman established for
expeditious & inexpensive resolution of customer complaints
related to Banking services.
Oct 1995 Banks are allowed to fix their own interest rates on domestic
term deposits with maturity of two years.
17 Sep RBI Web site made operational.
1996
1 Apr RBI & Government of India agree to replace the system of
1997 ad hoc Treasury Bills with Ways and Means Advances ending
automatic monetisation of fiscal deficits.
6 Jun RBI Conducts first auction of 14 day Treasury Bills. In
1997 October, auction of 28 day Treasury Bills was introduced.
10 Jul Foreign Institutional Investors (debt funds) permitted to
1997 invest in dated Government Securities.
22 Nov Bimal Jalan appointed Governor.
1997
28 Nov A series of measures introduced in response to the Asian
1997 Currency Crisis.
28 Nov Fixed rate repos in G-Secs introduced to give
1997 maneuverability in liquidity management; and to bring
orderly conditions in money and forex markets.
19 Dec Capital Index Bonds introduced for first time. Inflation
1997 hedged instrument linked to Wholesale Price Index.
Apr 1998 Recommendations on the harmonisation of the Role and
Operations of Development Financial Institutions and Banks
 paved the way for universal banking in India.
11 Dec RBI Monetary Museum Web Site launched.
1998
20 Apr Interim Liquidity Adjustment Facility introduced.
1999
Jul 1999 Interest Rate Swaps (IRS) and Forward Rate Agreements
(FRAs) introduced as OTC derivatives.
Nov 1999 RBI issued guidelines to banks for the issuance of debit
cards and smart cards to ease pressure on physical cash.
1999 Foreign Exchange Management Act, 1999 replaces FERA,
1973 with the objective of ‘facilitating external trade and
payments’ and ‘promoting the orderly development and
maintenance of foreign exchange market in India’. The new
act became operative from June 2000 along with a sunset
clause.

Chronology of Events
Consolidating the Gains - 2000 Onwards

Date Event
Jun 2000 Stock Index Futures introduced by as an exchange traded
derivative.
Mar 2001 Kissan Credit Cards introduced.
19 Apr Effective week commencing August 11, inter-bank term
2001 liabilities greater than 15 days maturity exempt from CRR.
19 Apr Banks allowed to formulate special Fixed Deposit Schemes
2001 for senior citizen offering higher rates of interest.
30 Apr Clearing Corporation of India established to address the
2001 need for an integrated clearing and settlement system
across different markets, viz., government securities, forex
and money markets. Commenced operations wef February
2002.
Jun 2001 RBI issues guidelines for internet banking heralding in a new
era in banking.
21 Nov Floating Rate Bonds auctioned for the first time.
2001
1 Jan RBI commenced announcing the reference rate for Euro,
2002 which replaced the currencies of Austria, Belgium, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg,
Portugal, Spain and The Netherlands.
21 Jun The Securitisation and Reconstruction of Financial Assets
2002 and Enforcement of Security Interest Ordinance came into
force, paving the way for setting up asset reconstruction
companies and for faster recovery of money by banks and
 financial institutions.
7 Sep Schemes to open Offshore Banking Units in Special
2002 Economic Zones by banks introduced. These units would be
virtually foreign branches of Indian Banks but located in
India.
11 Dec Auction format of 91 day Treasury Bills changed from
2002 uniform price auction to the multiple price auction method
Jan 2003 Select stock exchanges commence retail trading in
Government securities.
Apr 2003 Risk based supervision of Banks introduced.
3 Jun Guidelines for exchange traded interest rate derivatives
2003 issued.
7 Aug Clearing Corporation of India launches its forex clearing
2003 system FX CLEAR