First RBI Governor: Whenever there is talk of India’s economy and banking system, the name of Reserve Bank of India i.e. RBI comes first. But do you know that the first Governor of RBI was neither an Indian nor a British? This may be shocking for many people. Today, when the Reserve Bank of India is considered a very important part of the country’s economy, very few people would know that its first Governor was an Australian banker. He assumed this responsibility at a time when the banking system in India was gradually developing.
Who was the first Governor of RBI?
RBI was established on 1 April 1935. At that time Sir Osborne Smith was appointed as its first governor. Sir Smith was born on 26 December 1876 in Australia. He was associated with banking work from the very beginning. He worked in the Bank of New South Wales for about 20 years and then served in the Commonwealth Bank of Australia for 10 years. He came to India in the year 1926. Here he was made the Managing Governor of Imperial Bank of India, at that time Imperial Bank was considered one of the largest banking institutions in the country. His work was appreciated not only in India but also during the British rule. In March 1929, he was given the title of ‘Knight’. However, his tenure did not last long. He served as the Governor of RBI from 1935 to 1937. It is said that he resigned from his post due to some policy differences.
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How much salary did you get?
If we talk about salary, at that time the RBI Governor used to get a salary of around Rs 20,000 per month. As per today’s times, this amount was considered quite big at that time. In those times, very few people got this much salary. This shows how important and responsible the post of RBI Governor was even at that time. Apart from salary, they were also given other facilities like accommodation, official vehicle, staff and other necessary facilities, which reflected the dignity of this post.
Tenure and important aspects related to it
Sir Osborne Smith’s tenure was not very long, but during the time he was the Governor of RBI, he did many important things. At that time the banking system in India was new, so it was very important to give it the right direction. Smith focused on strengthening the banking system, so that people could trust the banks and the economic system could run properly. Along with this, he tried to keep the country’s currency i.e. money system stable. The economic conditions were not easy at that time, hence it was very important to take right decisions. He took such steps by which the banking and financial system could be set up properly.
However, due to disagreement with the British government on some issues, he left the post. After him James Brad Taylor was made the next Governor of RBI.
Importance of RBI and today’s situation
Today RBI has become a very important part of India’s economy. It is also called the backbone of the country’s economic system, because it takes major decisions related to money. Only RBI decides what will be the interest rate in the country, how inflation will be controlled and how much should be the flow of money in the market. Along with this, RBI keeps an eye on all the banks of the country and instructs them to follow the rules. If any bank does not follow the rules, RBI can also take action against it. Apart from this, RBI also plays an important role in maintaining economic stability. When there are economic fluctuations in the country, then RBI tries to handle the situation through its policies.
Also read: Who was the first CJI of India? Know how much salary was given
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