Reserve Bank’s 90 year journey has been unmatched

The Reserve Bank of India (RBI) plays the dual role of making monetary policy and regulating banks. Now RBI is going to enter its 90th year. This is the time when we should take stock of the 90 years of RBI’s journey.

The Reserve Bank started its functioning on 1 April 1935 on the basis of the recommendations of the Young Commission.

Sir Osborne Smith was the first Governor of the Reserve Bank. His tenure lasted from 1 April 1935 to 30 June 1937. In 1926 he came to India as Managing Governor of the Imperial Bank of India. RBI is a full service central bank unlike all other central banks.

Initially RBI focused on providing financial assistance to the agricultural sector. But later with time the area of work of RBI kept increasing. Worked towards better use of finance to accelerate development. RBI worked to develop the financial infrastructure of the country.

It played an important role in the establishment of many institutions like Insurance, Industrial Development Bank of India. With the beginning of economic liberalization in 1991, the RBI’s focus mainly shifted to central banking functions in monetary policy, supervision and regulation of banks, supervision of the payment system and development of financial markets.

Key facts

Burma (Myanmar) separated from the Union of India in 1937, but the RBI continued to serve as the central bank of Burma until the Japanese occupation of Burma and later until April 1947.

After the partition of India, the RBI functioned as the central bank of Pakistan until June 1948, i.e., when the State Bank of Pakistan began operations.

Sir Benegal Rama Rao, a member of the Indian Civil Service, served the longest tenure as Governor of the RBI between August 1949 and January 1957.

Manmohan Singh was the Governor of RBI from 16 September 1982 to 14 January 1985 and also became the Finance Minister and Prime Minister of the country (2004 to 2014).

Urjit Patel was the 25th Governor of RBI, he was the first Governor who resigned from his post.

Shaktikanta Das is the 25th Governor of RBI. He will become the longest serving governor after Sir Benegal Rama Rao after completing his second term in December this year.