Central banking in India: a study recent development

This book deals with the various developments in the field of central banking in India during the post-nationalisation period.

As Professor Sayers observes, the essence of central banking is discretionary control over the monetary system. Central banking can develop only gradually and its growth would depend on a number of factors such as the make-up and the co-operation of the various components of the money-market, the nature of the economy and the personality of the central banker.

Central banking is just a little over three decades old in India. The last fifteen or sixteen years have been a period of intense economic activity in our country due to planning for development. As is well-known, the activities of a central bank are bound to increase considerably and acquire much significance in the context of economic development. The growth objective of central banking policy would assume much importance during a period of development. The central bank should also assist in the evolution of a sound banking system with an adequate number of branches for mobilising the savings and the resources of the community. The monetary policy of the central bank should aim at the dual objectives of providing adequate credit for essential purposes and controlling the inflationary tendencies.