Celebrating 86th Foundation Day of Reserve Bank of India. Following the provisions of the Reserve Bank of India Act, 1934, it was established on April 1, 1935.
The Reserve Bank’s Central Office was originally located in Kolkata but was permanently relocated to Mumbai in 1937. Reserve Bank has been wholly owned by the Government of India since its nationalization in 1949. On 86th RBI’s Foundation Day let us know facts and important information about the Reserve Bank of India.
- The attempts to establish a banking facility in India can be traced back to 1773 as per the RBI History (Volume I). So the bank was finally opened after 160 years. Since it was initiated in January 1927 and after seven years, in March 1934, that legislation was passed to establish RBI, that legislation was implemented.
- RBI’s first governor, Sir Osborne Smith from Australia, was appointed on 1 April 1935. He was a professional banker who worked at the Bank of New South Wales for over 20 years and as the Managing Governor of the Imperial Bank of India for 10 years before arriving in India in 1926.
- The First RBI Governor Sir Osborne Smith resigned before his term (in 1937 her quit).
- In January 1938, the Bank issued its first currency bill in Rs 5 and Rs 10. Later that year, Rs 100, Rs 1,000 and Rs 10,000 were issued by the central bank.
- In 1943 Chintaman Dwarkanath Deshmukh was appointed as the governor after James Taylor passed away.
- However, the Indian first bank Governor was Chintaman Dwarkanath Deshmukh, it was not until August 1943. He served as Secretary and as the Deputy Governor in 1941 in the Indian Civil Service.
- He represented India in the talks in Bretton Woods in 1944, during his term as governor. He saw the transition to independence, a country’s divide and a division between India and Pakistan of the Reserve Bank’s assets and liabilities.
- In 1949, the bank was nationalised and the shares in the Bank’s capital were transferred to the Central Government on payment of suitable compensation.
- Deshmukh served in the easy transition of the Bank from a shareholder’s institution to a state-owned organisation when the Bank was nationalised on 1st January 1949.
- During Deshmukh’s appointment to the British Raj, he continued to serve even after the partition. Soon after he was appointed as the Finance Minister (FM) between 1950-56.