Did You Know: Why RBI's First Governor Never Signed Any Currency Notes?

When India¡¯s central bank, the Reserve Bank of India (RBI), was formed in 1935, Sir Osborne Smith was its first governor.

Who Was RBI's First Governor?

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A professional banker, Sir Osborne Smith served for over 20 years with the Bank of New South Wales and 10 years with the Commonwealth Bank of Australia before coming to India in 1926 as a Managing Governor of the Imperial Bank of India. He served as RBI's first governor from April 1, 1935, to June 30, 1937.

As per the RBI, Smith's stewardship of the Imperial Bank won him recognition in banking circles in India. However, his outlook on policy issues like exchange rates and interest rates was at variance with that of the government. He resigned prior to the completion of his term of office of three and a half years.

Also Read; How RBI Governor Is Appointed

Why RBI's First Governor Did Not Sign Any Notes

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RBI's first governor, Sir Osborne Smith, did not sign any bank notes during his tenure.

The reason is believed to be the tension between him and the govt. It is said that there were tensions between Osborne Smith, as RBI Governor, and the then government. As RBI Governor, his approach to policy issues such as exchange rates and interest rates differed from that of the then government. Smith's technical ability was never in doubt. As per the NBT report, James Grigg, the then finance member, is said to have hated Smith. This served to frustrate Smith. As the tensions escalated, Osborne Smith resigned.

As per govt's Press Information Bureau (PIB), Sir Osborne Smith resigned in 1936, citing the government¡¯s attempts to dominate the RBI. The main causes of Sir Osborne Smith¡¯s resignation were, apart from his temperamental incompatibility, the serious differences of opinion that arose between him and the Finance Member over the lowering of the bank rate and the management of the bank¡¯s investments.

Also Read: RBI Governor Denies Rumours Of Bringing Back Rs 1,000 Notes

Who All Has Held The Post Of RBI Governor?

Let us look at the list of 25 people who have held the post of RBI governor in the central bank¡¯s 88-year history.

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1.Sir Osborne Smith

1 April 1935¡ª30 June 1937

2.Sir James Taylor

1 July 1937¡ª17 February 1943

3.Sir C D Deshmukh

11 August 1943¡ª30 June 1949

4.Sir Benegal Rama Rau

1 July 1949¡ª14 January 1957

5.K G Ambegaonkar

14 January 1957¡ª28 February 1957

6.H V R Lengar

1 March 1957¡ª28 February 1962

7.P C Bhattacharya

1 March 1962¡ª30 June 1967

8.L K Jha

1 July 1967¡ª3 May 1970

9.B N Adarkar

4 May 1970¡ª15 June 1970

10.S Jagannathan

16 June 1970¡ª19 May 1975

11.N C Sen Gupta

19 May 1975¡ª19 August 1975

12.K R Puri

20 August 1975¡ª2 May 1977

13.M Narasimham

3 May 1977¡ª30 November 1977

14.Dr. I G Patel

1 December 1977¡ª15 September 1982

15.Dr. Manmohan Singh

16 September 1982¡ª14 January 1985

16.A Ghosh

15 January 1985¡ª4 February 1985

17.R N Malhotra

4 February 1985¡ª22 December 1990

18.S Venkitaramanan

22 December 1990¡ª21 December 1992

19.Dr. C Rangarajan

22 December 1992¡ª21 November 1997

20.Dr. Bimal Jalan

22 November 1997¡ª6 September 2003

21.Dr. Y V Reddy

6 September 2003¡ª5 September 2008

22.Dr. D. Subbarao

5 September 2008¡ª4 September 2013

23.Dr. Raghuram Rajan

4 September 2013¡ª4 September 2016

24.Dr. Urjit R. Patel

4 September 2016¡ª10 December 2018

25.Shri Shaktikanta Das

12 December 2018¡ªPresent

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