The Story of the Reserve Bank of India

by Rahul Bajoria

Raghuram Rajan, the former governor of the Reserve Bank of India (RBI), had once famously remarked, ‘We are neither hawks, nor doves, we are owls.’ However, the RBI is not an ordinary owl. It’s a very wise owl with immense powers and responsibilities.
There can be no argument that the RBI is not only among the very few islands of excellence when it comes to the institutions of the government of India, but also worthy of pre-eminence among all the other national banks in the world. Often described as the most conservative institution in India, this moniker has served the RBI well at all times. In recent years, however, the controversies like personality-driven narratives and some policy decisions such as demonetization, in which the RBI may or may not have had a big say, have come under intense media scrutiny. This trend is not new, though. Through its more than eight decades of history, and twenty-four governors, right from Osborne Smith to Urjit Patel, the RBI has always faced constant pressure from different governments to prioritize growth over monetary and economic stability.
The Story of the Reserve Bank of India documents the origins and evolution of the Reserve Bank of India, by analysing its leadership, its autonomy, its ‘political economy’ and its role in financial development. The book also explores the impact various governors have had in shaping the institution and its relationship with the government, especially the ministry of finance, in shaping India’s economic policy.
With in-depth research and wide-ranging accounts by leading economists, experts and former RBI governors and officials, this is the most impactful book ever written on the RBI.

Genres: Economics

340 pages, Kindle Edition

Published September 24, 2018

Reviews

[Aditya Kulkarni · Rating 5 out of 5]

An excellent book that describes the story of RBI right from its inception to 2018, the year the book was actually published. The Reserve Bank of India (RBI) is one rare organisation that has somehow stayed reputable despite being a governmental body. Considering how most public institutions have fared in India, it is no mean feat that the RBI has somehow managed to keep its reputation largely intact, especially considering the fact that the Ministry of Finance which more or loss controls the body has been a hub of mediocrity right from the beginning.

RBI's autonomy was challenged time and time again and was gravely threatened in the 1970s and the 1980s when the Government of India intervened in various ways. The post of the RBI governor was seen to be shady after the eminent governor Benegal Rama Rau was unceremoniously dumped by the then Finance Minister TT Krishnamachari and it didn't regain its reputation till IG Patel was made the governor in 1970s.

The book is engaging and reveals many aspects of the RBI and how organisations dealing with finance, economy, banking, etc work in India that are largely unknown to the common man. Overall, I would say that the book has done enough justice to the title it has and makes a good read.

[Nidan Basheer · Rating 4 out of 5]

Provides a good narrative of the early history of the RBI until liberalisation. Shed a light into what is essentially a forgotten part of Indian History

[Shruti Padia · Rating 4 out of 5]

Quite an engaging book and stays true to the title.