RBI

Milestones

History of any institution aims at documenting, collating, compiling and presenting a comprehensive, authentic and objective study of the working of that institution, the events, the policies, the institutional development of the organisation. The institutional history of the central bank reflects, in some ways, the monetary history of the country, bringing down to concrete and human terms the policies, the considerations, the mistakes, the thought processes, the decision making and the broader curves of political economy of the times.

The history of Reserve Bank of India thus not only traces the evolution of the central banking in India but also serves as a work of reference and an important contribution to the literature on monetary, central banking and development history of India. We have so far published five volumes of our history.

Volume 1 (1935-1951)

The Reserve Bank of India was set up on April 1, 1935, and is one of the few central banks to document its institutional history. So far it has brought out four volumes of its history. Volume 1, covering the period from 1935 to 1951, was published in 1970. It details the initiatives taken to put in place a central bank for India and covers the formative years of the Reserve Bank. It highlights the challenges faced by the Reserve Bank and the Government during World War II and the post-independence era.

Volume 2 (1951-1967)

Volume 2, covering the period from 1951 to 1967 was published in 1998. This period heralded an era of planned economic development in India. The volume captures the initiatives taken to strengthen, modify and develop the economic and financial structure of the country. Apart from the Reserve Bank's role as the monetary authority, it highlights the endeavour to establish an institutional infrastructure for agricultural and long-term industrial credit in India. The volume succinctly covers the external payment problems faced by the country and the rupee devaluation of 1966.

Volume 3 (1967-1981)

On March 18, 2006, Hon'ble Prime Minister, Dr. Manmohan Singh released the third volume of the Reserve Bank's history covering the period from 1967 to 1981. An important event of this period was nationalisation of fourteen banks in 1969, leading to spread of banking in the country's hinterland. The issues of safety and prudence in banking also gained prominence. Internationally, the abandonment of the Bretton Woods system in 1971 posed serious challenges for the developing countries including India. The volume also deals with the matters of co-ordination between the Reserve Bank and the Government.

Volume 4 (1981-1997)

Volume 4 of the Reserve Bank's history was also released by Dr. Manmohan Singh, Hon'ble Prime Minister of India, on August 17, 2013. It covers the eventful 16 years from 1981 to 1997, and is published in two parts. Part A and Part B together had to read in continuum. Part A focusses on the transformation of the Indian economy from a regime of restrictions to a progressive liberalisation. The 1980s were characterised by an expansionary fiscal policy accompanied by automatic monetisation of budgetary deficit that strained the conduct of monetary policy. Similarly, a highly regulated banking system impaired efficiency. The domestic macroeconomic imbalances combined with deteriorating external conditions triggered the balance of payments (BoP) crisis in 1991. Part B documents the structural reforms and the response of the Reserve Bank to the changing landscape — including securities market development, banking liberalisation, and the 1992 securities scam.

Volume 5 (1997-2008)

The fifth volume of the Reserve Bank of India's history was released in December 2022. This volume encompasses the 11-year period from 1997 to 2008. The volume, published by the Cambridge University Press, contains the institutional history of the Reserve Bank documented on the basis of official records, publications and oral discussions with persons who were closely associated with the working of the Reserve Bank during the period. This volume covers the developments in policies and operations in major functional areas during the period which was marked by two major crises in the global economy, i.e., the Asian financial crisis and the global financial crisis.