Explore the complete guide to RBI Governors from 1935 to 2024. Learn about their names, eligibility, powers, and tenure. Everything you need to know in one place!
Are you preparing for competitive exams and aiming to boost your general knowledge? Understanding the Reserve Bank of India (RBI) and its Governors is essential for excelling in exams. This comprehensive guide provides insights into the RBI Governors’ names, powers, eligibility criteria, and much more.
RBI History and Establishment
Establishment and Evolution
The Reserve Bank of India (RBI), often referred to as the Central Bank of India, was founded on 1st April 1935 under the RBI Act, of 1934. This establishment was a result of the esteemed “Hilton – Young Commission” recommendation. Initially, the RBI operated as a privately owned bank and underwent nationalization on 1st January 1949, post-independence.
Geographical Transition
While currently headquartered in Mumbai, the RBI had its beginnings in Kolkata and later shifted to Mumbai in 1937. This geographical shift marked a pivotal moment in the bank’s history.
Governance and Leadership
The head of the RBI, commonly known as the governor, is appointed by the Government of India. Over the years, the RBI has seen 25 governors, with Osborne Smith being the inaugural governor in 1935, and Shaktikanta Das presently holding the position.
Monetary Policy Mandate
One of the prime responsibilities entrusted to the RBI is the formulation of monetary policy, a crucial aspect in steering the financial course of the country. As the custodian of India’s monetary affairs, the RBI plays a pivotal role in shaping economic policies and ensuring financial stability.
Composition of RBI
- One- Governor
- Four- Deputy Governor
- Fourteen- Directors
- Two- Government Officers
Read Also: RBI Monetary Policy, Instruments, Objectives, Types, Infographics, & More
RBI Governors List from 1935 to 2024
The list of RBI Governors from 1935 to 2024 is as mentioned below:
| Sl. No. | RBI Governors Names | Time Period |
|---|---|---|
| 1 | Sir Osborne Smith | April 1, 1935 – June 30, 1937 |
| 2 | Sir James Braid Taylor | July 1, 1937 – February 17, 1943 |
| 3 | Sir C.D. Deshmukh | August 11, 1943 – June 30, 1949 |
| 4 | Sir Bengal Rama Rau | July 1, 1949 – January 14, 1957 |
| 5 | K.G. Ambegaonkar | January 14, 1957 – February 28, 1957 |
| 6 | H.V.R Lyengar | March 1, 1957 – February 28, 1962 |
| 7 | P.C Bhattacharya | March 1, 1962 – June 30, 1967 |
| 8 | L.K. Jha | July 1, 1967 – May 3, 1970 |
| 9 | B.N. Adarkar | May 4, 1970 – June 15, 1970 |
| 10 | S. Jagannathan | June 16, 1970 – May 19, 1975 |
| 11 | N.C. Sen Gupta | May 19, 1975 – August 19, 1975 |
| 12 | K.R. Puri | August 20, 1975 – May 2, 1977 |
| 13 | M. Narasimham | May 3, 1977 – November 30, 1977 |
| 14 | I.G. Patel | December 1, 1977 – September 15, 1982 |
| 15 | Manmohan Singh | September 16, 1982 – January 14, 1985 |
| 16 | Amitav Gosh | January 15, 1985 – September 4, 1985 |
| 17 | R.N. Malhotra | February 4, 1985 – December 22, 1990 |
| 18 | S. Vpnldraramanan | December 22, 1990 – December 21, 1992 |
| 19 | C. Rangarajan | December 22, 1992 – November 21, 1997 |
| 20 | Bimal Jalan | November 22, 1997 – September 6, 2003 |
| 21 | Y.V. Reddy | September 6, 2003 – September 5, 2008 |
| 22 | D. Subbarao | September 5, 2008 – September 4, 2013 |
| 23 | Raghuram G. Rajan | September 4, 2013 – September 4, 2016 |
| 24 | Urjit Ravindra Patel | September 4, 2016 – December 10, 2018 |
| 25 | Shaktikanta Das | December 12, 2018 – to date |
About Shaktikanta Das (Current Governor of RBI)
- Current Governor of the Reserve Bank of India (RBI), assuming office in 2018.
- 25th Governor of the RBI in the institution’s history.
Previously held key positions
- Member of the Fifteenth Finance Commission.
- India’s Sherpa to the G20.
- Economic Affairs Secretary.
- Revenue Secretary.
- Fertilizers Secretary.
Decorated career as an IAS officer
- Joined the Indian Administrative Service (IAS) in 1980.
- Served in various capacities for both Indian and Tamil Nadu governments.
Extensive international experience
- India’s Alternate Governor in the World Bank, ADB, NDB & AIIB.
- Represented India in international forums like IMF, G20, BRICS, and SAARC.
Academic Background
- Holds Bachelor’s and Master’s degrees in History from St. Stephen’s College, Delhi.
- Awarded D.Litt. by Utkal University in 2021.
Key Facts About Some Notable Governors of RBI
- Sir Osborn Smith: First Governor of the Reserve Bank of India.
- C. D. Deshmukh: The first Indian Governor, served from August 11, 1943, to June 30, 1949.
- Shaktikanta Das is the current and 25th Governor of the Reserve Bank of India (RBI).
- The four Deputy Governors of the RBI are Swaminathan J, T. Rabi Sankar, M. Rajeshwar Rao, and M.D. Patra
- The longest-serving Governor of the RBI was Benegal Rama Rau, who served for 7 years.
- The shortest-serving Governor of the RBI was Amitav Ghosh, who served for 20 days.
- Manmohan Singh, who later became the 13th Prime Minister of India, was the 15th Governor of the RBI.
- Urjit Patel was the 24th Governor of the Reserve Bank of India.
- Raghuram Rajan was the 23rd Governor of the RBI.
Awards and Honour
- Recognition and Award: Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), was honored with the ‘Governor of the Year’ award at the Central Banking Awards 2023 in London.
- Organizers’ Comments: The award organizers highlighted Das’s role in implementing critical reforms, leading payments innovation globally, and steering India through challenging times with a steady approach and effective communication.
- Challenges Faced: Das faced significant challenges during his tenure, including the collapse of a major non-bank firm, handling the first and second waves of the COVID-19 pandemic, and addressing the impact of Russia’s invasion of Ukraine in 2022.
- Risk Management: Concerns were raised about potential contagion risks related to public sector bank loans, particularly those associated with companies like Adani Group, whose shares experienced a decline following a Hindenburg report.
- Timeline of Tenure: Das’s tenure began in 2018 and involved navigating through various crises, such as the IL&FS collapse, liquidity crunch, and the restructuring of the RBI.
- Achievements: The organizers credited Das for legalizing the bankruptcy code, encouraging banks to raise more capital, restructuring the RBI with a dedicated supervision department, and establishing a College of Supervisors for training.
- Leadership during COVID-19: Das was recognized for maintaining a calm presence during the COVID-19 pandemic, effectively balancing political pressure and economic challenges.
- Contributions to Financial Innovation: Governor Das played a key role in overseeing projects related to the Unified Payments Interface (UPI) and positioning India at the forefront of central bank digital currency (CBDC) development.
- Opposition to Crypto Assets: The statement mentioned Das’s opposition to crypto assets in India.
- Praise from Former RBI Governor: YV Reddy, a former RBI governor, commended Das for his outstanding performance in managing extraordinary challenges and negotiating relationships with the government.
RBI Governors Powers
- Banker’s Banker: The RBI Governors act as a central bank for other banks.
- Heads All Commercial Banks: They oversee all commercial banks operating in the country.
- Influence on Micro and Macro Economies: Governors play a crucial role in shaping the economic landscape.
- Control Over Stock Market: They exercise authority over the stock market.
- Signatures on Currency Notes: RBI Governors’ signatures appear on currency notes.
- Control Over Monetary, Currency, and Credit System: Governors regulate and control these vital financial aspects.
Read Also: Reserve bank of India Functions & Facts with Previous Year Questions
RBI Governors Eligibility
Evolution of Eligibility: A Shift from Civil Services
In its initial phases, the eligibility criterion for RBI Governors was rooted in Indian Civil Services, featuring luminaries like C D Deshmukh and Bengal Rama Rao. However, the landscape has evolved to welcome individuals from diverse backgrounds.
Educational Qualifications
Prospective RBI Governors should hold a Graduate degree, Post Graduate degree, or be a Chartered Accountant. This academic foundation lays the groundwork for a comprehensive understanding of the financial intricacies.
Professional Experience
To ascend to the esteemed position, candidates must have a rich professional background. Eligibility hinges on prior experience in key institutions such as:
- IMF/ World Bank: International exposure in financial matters.
- Bank Leadership: Serving as Chairman or General Manager in a bank.
- Financial Stature: Being associated with reputed financial or banking organizations.
- Government Insight: Experience in the Ministry of Finance (GOI) adds valuable governmental insights.
Age and Civic Criteria
As a fundamental requirement, aspiring Governors must be 35 years or older. Simultaneously, eligibility comes with the stipulation that the individual:
- Not a Legislative Member: Should not be a part of the Parliament or State Legislature.
- Non-Profit Commitment: Must refrain from holding any other office for profit.
This broadened eligibility spectrum ensures that the RBI Governorship welcomes seasoned individuals with a blend of academic prowess, professional acumen, and a commitment to public service.
RBI Governors Appointment
- The Governor is not appointed by the PMO but is recommended by the Union Finance Minister.
RBI Governors Tenure
- Initially three years, extendable for two more years.
- Termination can occur through dismissal by the President or voluntary resignation submitted to the President.
RBI Governors Responsibilities
- Maintain monetary stability and formulate RBI policies.
- Issue licenses for new foreign and private banks.
- Regulate interest rates on advances and deposits.
- Administer the financial system parameters.
- Manage external trade and payment, promoting the orderly development of the foreign exchange market.
- Monitor currency notes and coins supply, issuance, and destruction.
- Oversee rules and regulations for customer-friendly operations.
- Supervise primary co-operative banks through Urban Bank Departments.
- Facilitate and monitor credit flow to small-scale industries, rural, and agricultural sectors.
- Regulate state cooperative banks, regional rural banks, and various local area banks.
Frequently Asked Questions (FAQs)
There have been 25 RBI Governors to date, with Shaktikanta Das serving as the current governor.
The RBI Governor’s tenure is initially three years, extendable for two more years.
The RBI Governor is not appointed by the Prime Minister’s Office but is recommended by the Union Finance Minister.
To be eligible, an individual must hold a Graduate/Post Graduate/Chartered Accountant degree and have relevant experience in institutions like the IMF/World Bank, banking organizations, or the Ministry of Finance.
The RBI Governors act as the banker’s banker, head all commercial banks, influence micro and macro economies, control the stock market, and have signatures on currency notes.
Conclusion
As you prepare for government exams, a thorough understanding of RBI Governors and their roles is crucial. Stay informed about the list of governors, their powers, eligibility criteria, and responsibilities to excel in the general awareness and polity sections of competitive exams.
Source:
- Wikipedia
- Business Today
AI Content Disclosures:
This content utilizes AI tools for summarization, language simplification, and table generation to enhance accessibility and readability. All the data are sourced from the mentioned sites.
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