RBI Governors from 1935 to 1970

The Reserve Bank of India (RBI), founded on 1 April 1935, stands as the backbone of India’s monetary system. From managing the issuance of currency to formulating economic policies and maintaining financial stability, the RBI has played a pivotal role in shaping modern India’s economic landscape. Over the decades, the individuals who have served as Governors of the RBI have been influential figures — each bringing their expertise, vision, and leadership during different economic and political climates. For collectors of Indian banknotes, the legacy of these Governors extends beyond policy; their signatures on currency serve as tangible imprints of their tenure and contributions. These signatures offer both historical and numismatic value, providing an accessible timeline of India’s banking history through paper money.

This article focuses on the early phase of the Reserve Bank of India — from its inception in 1935 until 1970. This period was marked by monumental events including colonial rule, World War II, independence in 1947, the transition from British monarch portraits to national symbols, and the establishment of India’s sovereign monetary identity. The Governors during this era not only managed economic challenges but also helped lay the institutional foundation for a newly independent nation. From Sir Osborne Smith, the first Governor, to L. K. Jha, who oversaw critical policy shifts in the late 1960s, each individual played a key role in guiding the RBI and shaping the future of Indian currency. Through their biographies, milestones, and the banknotes signed under their authority, we gain insight into both the evolution of Indian money and the broader historical forces at play.

Osborne Smith

Term: 1 April 1935 – 30 June 1937

Background: Sir Osborne Arkell Smith holds the distinction of being the first Governor of the Reserve Bank of India. An accomplished banker, he brought with him considerable experience from Australia’s financial sector, having served as the Managing Governor of the Imperial Bank of India— India’s leading commercial bank at the time. His appointment as RBI Governor marked the beginning of centralized banking in India, setting the stage for the institution's future development.

Legacy: As the inaugural Governor, Osborne Smith played a crucial role in establishing the core framework of the Reserve Bank of India. His tenure was focused on setting up the institutional structure, staffing, and operational foundations of India’s central bank. However, his time in office was relatively short, as he resigned before the completion of his term due to differences with the British colonial government over policy matters — particularly concerning exchange rate management and the role of the RBI in economic planning.

Banknotes: No officially issued Indian banknotes bear Osborne Smith’s signature. Interestingly, his signature does appear on certain trial and essay banknotes bearing the portrait of King Edward VIII—notes that were prepared but never released due to the King’s abdication.

J. B. Taylor

Term: 1 July 1937 – 17 February 1943

Background: Sir James Braid Taylor was the second Governor of the Reserve Bank of India and played a foundational role in shaping the institution’s early identity. Prior to his appointment as Governor, he had been closely involved in India’s monetary policy as a member of the Indian Currency Board and was one of the architects of the Reserve Bank of India Act, 1934. His background in finance and administration made him an ideal leader during the bank’s critical formative years.

Legacy: Taylor’s tenure oversaw the historic moment when the Reserve Bank of India formally took over the responsibility of issuing currency from the Government of India in 1938. Under his stewardship, the RBI began issuing banknotes bearing the portrait of King George VI, officially marking the start of RBI-issued paper money. He also guided the RBI through the early years of World War II and helped manage Burma’s monetary needs before the Japanese occupation. His leadership helped institutionalize many of the RBI’s core functions that continued for decades. His second term came to an untimely end when he passed away while still in office on 17 February 1943, making him the only RBI Governor to die in office.

Banknotes: James Braid Taylor was the first RBI Governor whose signature appeared on Indian currency, written as “J.B. Taylor”. His signature appears on King George VI Reserve Bank notes of various denominations, including 2, 5, 10, 50, 100, 1000 and 10000 Rupees. He did not sign 1 Rupee notes, as they continued to be issued separately by the Government of India. Prior to his RBI governorship, he had also signed Government of India King George V notes as Controller of the Currency. In addition, he signed Reserve Bank of India notes issued for Burma making his signature especially important to collectors of both Indian and Burmese paper money. His signature also appears on Military Administration of Burma banknotes.

C. D. Deshmukh

Term: 11 August 1943 – 30 June 1949

Background: Sir Chintaman Dwarakanath Deshmukh holds the distinction of being the first Indian Governor of the Reserve Bank of India. A member of the Indian Civil Service (ICS), Deshmukh had a strong academic background and served in various administrative and financial roles before joining the RBI. His elevation to Governor during British rule was a significant milestone, symbolizing the increasing role of Indians in high-level economic policymaking. He was knighted in 1944 for his contributions during World War II.

Legacy: Deshmukh's tenure spanned one of the most turbulent and historically significant periods in India’s modern history. He guided the RBI through the final years of World War II, the transition to Indian independence in 1947, and the partition of India and Pakistan, which involved the complex division of monetary assets. He was instrumental in overseeing the RBI’s role as the central bank for Pakistan during the first year of its existence. Under his leadership, the RBI also began taking more autonomous positions on domestic monetary issues. Deshmukh resigned as Governor shortly before the RBI was nationalized in 1949, and he later served as India’s Finance Minister from 1950 to 1956.

Banknotes: C. D. Deshmukh’s signature appears on a wide array of historically significant notes. These include Reserve Bank of India banknotes bearing the portrait of King George VI in denominations of 2, 5, 10, and 100 Rupees. His signature is also found on Military Administration of Burma and Burma Currency Board overprint issues, as well as Dominion of Pakistan banknotes that continued using the George VI portrait in the early post-partition years. Notably, Deshmukh was the first RBI Governor to sign a note bearing the Ashoka Pillar emblem—the 10 Rupees banknote issued after independence, which replaced the British monarch with India’s national symbol. This makes his signature especially significant to collectors of both British India and Republic India currency.

B. Rama Rau

Term: 1 July 1949 – 14 January 1957

Background: Benegal Rama Rau holds the distinction of being the longest-serving Governor of the Reserve Bank of India. A member of the Indian Civil Service, he brought extensive experience in finance and diplomacy to the position, having served as India’s Ambassador to the United States and as the Financial Adviser to the Government of India. His term spanned the formative years of India’s independent financial administration and the early stages of nation-building.

Legacy: Rama Rau’s tenure witnessed India’s transition from a colonial economy to a planned, sovereign one. He was closely involved in implementing the monetary aspects of the First and Second Five-Year Plans. His governance emphasized financial stability, institution building, and laying the foundation for a modern banking system. During his time, India navigated challenges such as food shortages, inflation, and foreign exchange constraints. He was also instrumental in strengthening the RBI’s autonomy and enhancing its role in policy formation. Rama Rau’s resignation in 1957 followed policy disagreements with the Finance Minister, T. T. Krishnamachari, over the regulation of interest rates and the central bank’s independence.

Banknotes: B. Rama Rau’s signature appears on a wide range of Republic India banknotes bearing the Ashoka Pillar emblem, marking the full departure from colonial-era currency design. His signature can be found on various denominations including the 2, 5, 10, 100, 1000, 5000, and 10000 Rupees notes. For collectors, Rama Rau’s tenure is notable for being a period of both monetary evolution and visual transformation of Indian currency, as his notes symbolize the consolidation of India’s post-independence identity in paper money.

K. G. Ambegaonkar

Term: 14 January 1957 – 28 February 1957

Background: Krishnanath Ganesh Ambegaonkar served as the interim Governor of the Reserve Bank of India for a brief period of six weeks following the resignation of Benegal Rama Rau. A senior civil servant from the Indian Civil Service (ICS), Ambegaonkar was deeply involved in India's post-independence financial administration and had served as Secretary in the Ministry of Finance. His temporary appointment as RBI Governor was intended to ensure continuity until a new full-term appointment could be made.

Legacy: While his time at the Reserve Bank was short, Ambegaonkar played a stabilizing role during a moment of administrative transition. His brief stewardship is remembered as a low-profile yet important bridging phase between two long-serving governors.

Banknotes: No Indian banknotes carry Ambegaonkar’s signature in his capacity as Governor of the Reserve Bank of India. However, his signature does appear on several 1 Rupee banknotes, when he held the position of Finance Secretary in the Ministry of Finance.

H. V. R. Iengar

Term: 1 March 1957 – 28 February 1962

Background: Haravu Venkatanarasingha Verada Raj Iengar, commonly referred to as H. V. R. Iengar, was a distinguished member of the Indian Civil Service (ICS) and held key administrative positions before becoming the Governor of the Reserve Bank of India. He succeeded K. G. Ambegaonkar and brought to the RBI a strong reputation for financial acumen.

Legacy: Iengar’s tenure marked a significant phase in the consolidation of India’s post-independence financial systems. He played an important role in strengthening the banking infrastructure and oversaw the early steps toward financial inclusion and institutional development. One of the most noteworthy developments during his governorship was the transition of India’s coinage system from the old system of pies, paise, and annas to the modern decimal coinage system, which came into effect in 1957. This shift modernized the Indian currency framework and aligned it with global standards, simplifying calculations and everyday transactions.

Banknotes: During H. V. R. Iengar’s tenure, several denominations of Indian banknotes were issued under the Ashoka Pillar series, reflecting the Republic’s growing national identity. His signature appears on Rs. 2, Rs. 5, Rs. 10, Rs. 100, Rs. 1000, Rs. 5000, and Rs. 10000 notes. Notably, the Rs. 100 banknote issued during his term featured two distinct reverse designs: one depicting an elephant motif, and another showcasing a large dam, representing industrial and infrastructural development. In addition to standard circulation notes, Iengar’s signature also appears on special issues for external use, including the ₹5, ₹10, and ₹100 Persian Gulf Rupees issued for circulation in Gulf countries, as well as the ₹10 and ₹100 Haj notes, which were used by Indian pilgrims traveling to Saudi Arabia for Hajj.

P. C. Bhattacharya

Term: 1 March 1962 – 30 June 1967

Background: Padmanabha Chetty Bhattacharya, commonly referred to as P.C. Bhattacharya, was a seasoned banker who had served as Chairman of the State Bank of India prior to his appointment as the seventh Governor of the Reserve Bank of India. His expertise in finance and banking earned him respect in monetary policy circles.

Legacy: Bhattacharya’s term was marked by his commitment to monetary discipline and institutional development. He steered the Reserve Bank through a period of rising public sector expenditure and economic planning. Importantly, he expressed reservations about the proposal to nationalize private banks in India. His stance reflected a cautious, systems - focused approach that prioritized strengthening the existing banking framework rather than overhauling it. He also worked to reinforce RBI’s supervisory powers and enhance coordination with other financial institutions during a time of economic transformation.

Banknotes: Banknotes signed by P. C. Bhattacharya include the Ashoka Pillar series in the following denominations: ₹2, ₹5, ₹10, ₹100, and ₹1000. Notably, during his tenure, several denominations saw a transition in size. The 2, 5, 10, and 100 Rupee notes were issued in both the earlier large-sized format and later in a reduced-size format, which became standard in subsequent years. The reduction in size was part of a cost-saving initiative aimed at cutting printing and handling expenses.

L. K. Jha

Term: 1 July 1967 – 3 May 1970

Background: Lakshmi Kant Jha was a distinguished Indian civil servant, economist, and diplomat before becoming the eight Governor of the Reserve Bank of India. He was a member of the Indian Civil Service (ICS), having joined in 1936, and served in various administrative and economic roles during British rule and post-independence India. Prior to his appointment as RBI Governor, Jha had been Secretary to Prime Minister Lal Bahadur Shastri and was closely involved in shaping India's economic policy during a transformative period.

Legacy: L. K. Jha’s governorship coincided with one of the most pivotal moments in India’s banking history—the nationalization of 14 major commercial banks in July 1969. This decision reshaped the Indian banking landscape, bringing a large portion of the financial sector under government control to align banking services with developmental priorities. Jha was deeply involved in the implementation of this transformative reform and helped steer the Reserve Bank through the initial stages of the change. Jha also advocated for greater institutional autonomy and better coordination between monetary and fiscal authorities.

Banknotes: During his tenure, L. K. Jha’s signature appeared on the reduced-size Ashoka Pillar banknotes of ₹2, ₹5, ₹10, and ₹100—continuing the modernized sizing strategy initiated to reduce production costs and improve currency handling. He was the last RBI Governor whose signature appeared on the 5000 and 10000 Rupee banknotes, denominations that were eventually demonetized in the late 1970s. Importantly, he also signed India’s only commemorative banknote series, issued on 2 October 1969 to mark the birth centenary of Mahatma Gandhi. These included ₹2, ₹5, ₹10, and ₹100 notes, all featuring special design elements commemorating the occasion.

Conclusion

The period from 1935 to 1970 marked a transformative era for the Reserve Bank of India, during which the institution evolved from a colonial monetary authority into the central pillar of an independent nation’s financial system. Each Governor during this time brought their own vision and leadership to the role, navigating through events such as the Second World War, Indian independence, and significant structural reforms like decimal coinage and bank nationalization. The signatures of these Governors on Indian banknotes serve as powerful historical markers, linking currency not only to policy but to the personalities who helped shape India’s economic identity. Whether it was J.B. Taylor laying the foundations, C. D. Deshmukh overseeing the transition to independence, or P.C. Bhattacharya implementing size reforms, each Governor’s contributions left an indelible imprint on both the institution and the Indian economy.

For collectors and enthusiasts of Indian currency, the banknotes signed by these early Governors offer more than just monetary value — they are tangible artifacts of history. From the regal portrait notes of King George VI to the first appearances of the Ashoka Pillar, these notes chart the visual and ideological transformation of India’s currency. As the numismatic community continues to explore the intricate world of old Indian currency, these early RBI Governors provide a compelling narrative — one where leadership, nation-building, and monetary evolution converge on paper. Studying their tenures not only deepens appreciation for Indian paper money but also offers insight into the broader story of India's financial and political journey through the mid-20th century.