India’s Central Bank Reserve Bank of India formed on 1st of April 1935. RBI controls the supply of currency in India under various regulations it plays a vital role in the development strategy of India.
After the World War 1 economic crisis, it’s many nations in order to come up with India decided to found Reserve Bank of India based on several guidelines. It was set up under the Recommendation of Royal commission on Indian currency and Finance in 1926. RBI was privately owned until it was Nationalised in 1949.
|1926||Royal Commission on Indian Currency (Hilton Young Commission) recommends the establishment of a central bank to be called the ‘Reserve Bank of India’.|
|1931||Indian Central Banking Enquiry Committee revives the issue of the establishment of the Reserve Bank of India as the Central Bank for India.|
|5 March 1934||Reserve Bank of India Act, 1934, (II of 1934) constitutes the statutory basis on which the Bank is established.|
Dr. Ambedkar who is known for the Indian Constitution played a key role in the formation of the Reserve Bank of India. He made a Ph.D. thesis in 1923 under the title “The Evolution of Provisional Finance in British India” provided an academic basis for the finance commission of India which was subsequently established under article 280 of the constitution to address problems in finance.
Reserve Bank of India was conceptualized based on the guidelines presented by Dr. Ambedkar to the Royal Commission of Indian currency and Finance in 1925. Members of the Royal Commission found that Dr. Ambedkar’s book on the problems of the Rupee its problems and its solution as an invaluable reference tool and the central Legislative Assembly eventually passed the guidelines as the RBI act in 1934.
On September 4th 2014 former Indian President Pranab Mukherjee delivered the valuable information about Ambedkar on his memorial lecture event on “Vision on India in 21st Century, As envisaged by Dr. Ambedkar”.