This fourth volume in the series of the history of the Reserve Bank of India covers the 16 eventful years from 1981 to 1997. It is published in two parts, which ideally should be read as a continuum.Part A focuses on the transformation of the Indian economy from a regime of restrictions to progressive liberalisation. The 1980s were characterised by an expansionary fiscal policy accompanied by automatic monetisation of budgetary deficit that strained the conduct of monetary policy. Similarly, a heavily regulated banking system impaired efficiency. The domestic macroeconomic imbalances combined with deteriorating external conditions triggered the balance of payments (BoP) crisis of 1991. Subsequent reforms ushered in far reaching changes not only in the economy but also in central banking.Part B of the volume captures the implementation of structural and financial sector reforms: fiscal correction and phasing out of automatic monetisation; development of government securities market; and greater integration among money, securities and foreign exchange markets. It also covers the transformation in banking with liberalisation and improvement in credit delivery. At the same time the Reserve Bank had to contend with a securities scam which led to the introduction of better control systems and strengthening of the payment and settlement systems.With the introduction of financial sector reforms, the Reserve Bank adopted a more active communication strategy. The organisational structure of the Reserve Bank also changed in response to domestic necessities and international developments. The Bank embarked upon technological transformation and upgraded its systems and procedures to manage its operations effectively.This volume is more than a mere narrative of the history of the Reserve Bank; it also provides valuable insights into India's economic development and policy during an eventful and significant period.
The Reserve Bank of India is India's central banking institution, which formulates the monetary policy with regard to the Indian rupee. Established in 1935, it is one of the oldest central banks in the developing world.
PART AForewordPrefaceAcknowledgementsAbbreviationsChapter 1: Introduction and Overview, I. Consolidation and Early Liberalisation: 1981 to 1989Chapter 2: Macroeconomic ContextChapter 3: Monetary-Fiscal InterfaceChapter 4: Monetary and Credit PolicyChapter 5: Balance of Payments and Exchange ControlChapter 6: Banking and FinanceChapter 7: Developments in Banking SupervisionChapter 8: Rural Credit PolicyChapter 9: Conclusion: The Decade of the 1980s, II. Crisis and Reforms: 1989 to 1997 (contd...)Chapter 10: Economic and Financial EnvironmentChapter 11: The Balance of Payments Crisis of 1991Chapter 12: Management and Resolution of the 1991 CrisisChapter 13: External Sector LiberalisationChapter 14: Monetary ManagementPART BII. Crisis and Reforms: 1989 to 1997 (concld.)Chapter 15: Public Debt ManagementChapter 16: Financial MarketsChapter 17: Reforms in Banking and Financial InstitutionsChapter 18: Agriculture and Rural DevelopmentChapter 19: Conclusion: First Seven Years of the 1990sIII. Organisational AspectsChapter 20: Communication PracticesChapter 21: Institutional ChangesIV. MiscellanySelect PhotographsAppendices, Enclosures and DocumentsV. References and IndexSelect ReferencesIndex