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”

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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 60th 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”

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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”

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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”

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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”

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The Report on Currency and Finance

The New Report on Currency and Finance

The latest issue of the 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”

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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”

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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

C.D. Deshmukh

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”

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Hawick to Hawick: Life of James Wilson

Portrait of James Wilson

This post is a longer version of my article on James Wilson, the first Finance Member of the Viceroy’s Executive Council, which was published in Business Standard dated 21 January 2021. Please see the link here. Wilson was also the Founder of The Economist, and the Standard Chartered Bank. He presented the first Indian budget in 1860, and introduced income tax in the country. He also laid the foundations for introducing government paper currency in India the Indian Police, and the Office of the Comptroller and Auditor General, among other things. Continue reading “Hawick to Hawick: Life of James Wilson”

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Regulation and Supervision: A few lessons

Regulation and supervision are much more complex than meets the eye. This post attempts to draw a few regulatory and supervisory lessons. This is against the background of a recent book by a well-known economist and former Governor, Reserve Bank of India.

A missing portrait

If one were to write the history of the Reserve Bank of India today, the midpoint would be May 1977. This was when the new Janata Government forced the resignation of K.R. Puri, the 12th Governor. M. Narasimham, his successor, has in his memoirs detailed the events that led to the resignation. After another change of government, a vindictive Puri would come back, as a one man Commission. His report faulted the conduct of gold auctions under the venerable I.G. Patel, among the most brilliant Governors of the Bank. Continue reading “Regulation and Supervision: A few lessons”

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