G Sreekumar, Author at Tiger and Palm Tree

History of Indian Currency: The Herschell Committee

Lord Herschell (used with permission of NPG, London)

The Herschell Committee on Indian Currency, appointed in 1892, was the first of five Committees which examined India’s currency question. The other four were the Fowler, and Babington-Smith Committees, and the Chamberlain, and Hilton Young Commissions. Prior to this, the Mansfield Commission had in October 1866 submitted a brief report on implementation of the Paper Currency Act 1861. There have also been various minutes on the subject. These includes minutes of James Wilson, the first Finance Member, Sir William Mansfield (later Lord Sandhurst), George Dickson, Secretary to the Bank of Bengal, and others. We will cover there in different parts. In the first part of this series, we discuss the Herschell Committee, which submitted its report in 1893. Continue reading “History of Indian Currency: The Herschell Committee”

Purshotamdas Thakurdas, Part 3

Sir Purshotamdas Thakurdas next made a major contribution to the work of the Indian Retrenchment Committee. The implementation of the Acworth Committee recommendations, including greater investment for railway expansion and a separate railway budget, increased government expenses substantially. The government feared that it might not be able to meet these rising expenses. Following this, the government responded by cutting expenses even by laying off people wherever possible. To find the means of doing this, it appointed the Indian Retrenchment Committee, which functioned during 1922-23. Continue reading “Purshotamdas Thakurdas, Part 3”

PT and the Acworth Committee

Sir Purshotamdas Thakurdas
(Source: www.caionline.in)

In the next stage of his life, Purshotamdas Thakurdas, now in his early 40s, was pursued for being on various important Committees. The first such was the Acworth Committee. The reason must have been his balanced approach to all matters, in-depth knowledge and understanding of the commercial and financial aspects of various issues on hand, clear articulation in English, and fearless elucidation of his views even if they were unpalatable to the Chairman of the Committee/Commission, or its other members. This was a rare combination of qualities not commonly found even today. Continue reading “PT and the Acworth Committee”

Purshotamdas Thakurdas as the young crusader

Sir Purshotamdas Thakurdas by Bassano Ltd © National Portrait Gallery, London (used with kind permission)

Purshotamdas Thakurdas, the young crusader, Sir PT or PT to friends, and as “King of Cotton” among other epithets, had a formidable reputation for his honesty, integrity, and fierce independence. He retained these characteristics while serving on up to seventy bodies. These included the Round Table Conferences, legislative councils and assemblies, committees and commissions, and trusts and boards. He served in these as trustee, director, commissioner or chairman. Moreover, PT was an untiring crusader for various public causes from a young age, including famine relief. He was also the fourth longest-serving director on the Central Board of the Reserve Bank of India. The next month, July 2021, denotes the 60^th year of the passing away of Sir PT. This is the first in a series of posts covering the life and work of Sir PT. Continue reading “Purshotamdas Thakurdas as the young crusader”

For Whom the ATM Tolls? On Paying to Withdraw Our Money

The regulator has raised the ATM user charges. Once again. It follows a 2019 report of a Committee constituted by the Reserve Bank of India. The CEO of the Indian Banks Association (IBA) chaired the Committee and prepared the report. It had members from banking and industry stakeholders. Neither the regulator nor any depositor association was a member. Are these charges justified? Continue reading “For Whom the ATM Tolls? On Paying to Withdraw Our Money”

Reimagining Indian Currency

An early Government of India note of the Victoria series

One hundred and sixty years after government paper currency was introduced in India in 1861, digital payments are leaping ahead, and Central Bank Digital Currency is round the corner. But, paper currency is here to stay. Notes in circulation will, in aggregate terms, soon cross Rs. 30 trillion and approach double the pre-demonetisation level. Continue reading “Reimagining Indian Currency”

Why this blog

It was Bertrand Russell (or maybe Bernard Shaw in one of his long introductions) who wondered what an overthrown official would do thereafter. In ancient Greece, he speculated, the deposed official would round up mercenaries and attack his city state. The unseated Chinese civil servant, he added, would retire to the hills and write poetry. A retired Indian bureaucrat, I believe, would write his memoirs or set up an NGO. Continue reading “Why this blog”

The Report on Currency and Finance

The New Report on Currency and Finance

The Reserve Bank of India released its new Report on Currency and Finance (RCF) in February this year. This comes nearly a decade after the previous issue. The RCF is a non-statutory report, unlike the Annual Report and Report on Trend and Progress of Banking in India (RTP). The former is published under the Reserve Bank of India Act, 1934. The RTP is published under the Banking Regulation Act, 1949. The 2021 RCF is significant in three ways. It is the centenary of the first consolidated report of the Controller of the Currency, which became the RCF. For the first time, it is a discussion paper on a specific issue. It is also the first issue of RCF with a foreword signed by the Governor, Reserve Bank of India. The RCF has had a chequered history, which is worth recounting. Continue reading “The Report on Currency and Finance”

KRK Menon, First Finance Secretary

KRK Menon (left) with Vijayalakshmi Pandit

This is a post on my two brief meetings with KRK Menon, the first Finance Secretary. But, let me first start with a brief on the son. A person of Indian origin heading a global MNC no longer makes waves. Nevertheless, it is still surprising that the passing away of Bhaskar Menon in March this year, aged 86, went largely unnoticed in India, barring a few odd write-ups and mentions. Continue reading “KRK Menon, First Finance Secretary”

Roses and Magnolias: Deshmukh’s Lovely Gardens

“…appreciation of a garden lies not with the gardener but with the observer of the many gardens I have cultivated.”
C.D. Deshmukh, The Course of My Life.

Deshmukh Chowk

If one were to walk down from Churchgate in South Mumbai, towards Mantralaya, along the Jamshetji Tata Road, the third round is Deshmukh Chowk. It is named after Chintaman Dwarakanath Deshmukh, the third Governor of the Reserve Bank of India and India’s third Finance Minister. There could be two claimants to getting the roundabout so named after Deshmukh. Continue reading “Roses and Magnolias: Deshmukh’s Lovely Gardens”