Operations of the Reserve Bank of India, (1935 - 1954)

THIS book, as the title implies, attempts to evaluate the significance of the operations of the Reserve Bank of India. The main purpose is to trace the evolution and the effective ness of the operations, in an Indian setting, of a central bank, whose organization, powers, and functions are based on the experience of the American and the British central banks.
To attain this objective a detailed examination is made of the instruments used by the Reserve Bank to achieve its policy aims. The scope of such an examination was considerably narrowed owing to the fact that apart from moral suasion, only discount rate and open market operations were employed by the Reserve Bank in carrying out its policy during the period under study. Before studying more closely the use of these instruments, the setting in which the Reserve Bank has to operate is described. The first part of the book deals with the characteristics of the Indian banking system. It also describes the functions, organization and powers of the Reserve Bank. Efforts of the Reserve Bank to improve the structure of the Indian banking system by developing a bill market in India are covered in a separate chapter.