A short history of RBI's turbulent relationship with the government

In 1979, a Special Secretary in the finance ministry called Manmohan Singh would give a sharp rap on the RBI's knuckles for not consulting the government over some issue

T C A Srinivasa-Raghavan

The story of the sacking of first RBI governor, Sir Osborne Smith, because of differences with the government, has been often told. But who was his successor? His name was James Taylor, an additional secretary in the finance department in Delhi. Unlike his boss in Delhi, Sir John Grigg, the finance member of the viceroy’s council, he didn’t think India was there only to be plundered. He was only 46 when he was made governor on the unanimous recommendation of the Board. Manmohan Singh, who everyone thinks was the youngest man to be appointed Governor, was 48 ...