RBI Governors from 1970 to 1990

The period of RBI Governors from 1970 to 1990 represents one of the most dynamic and transformative chapters in India’s monetary history. Following the formative decades covered in our earlier article, RBI Governors from 1935 to 1970, this era marked the Reserve Bank of India’s transition from post-independence consolidation to modern economic management. During these two decades, the RBI evolved from an institution still finding its footing in a newly independent nation to one that played a decisive role in steering India’s monetary policy, financial regulation, and currency modernization.

This phase saw the introduction of new denominations such as ₹20, ₹50, and ₹500; the demonetization of high-value notes in 1978; and steady improvements in note design, printing technology, and security features. Economically, India grappled with oil shocks, balance-of-payment pressures, inflation, and the slow emergence of liberalization policies that would reshape the economy in the early 1990s. Against this backdrop, the Governors who served between 1970 and 1990 guided the RBI through some of the most challenging and formative moments in its history. Their leadership, vision, and policy decisions not only shaped India’s monetary system but also laid the foundation for its modern financial architecture.

S. Jagannathan

Term: 16 June 1970 – 19 May 1975

Background: Sarukkai Jagannathan was the tenth Governor of the Reserve Bank of India. A distinguished member of the Indian Civil Service (ICS), he had served in various key administrative and financial roles before his appointment as Governor. His professional background combined administrative acumen with a keen understanding of India’s evolving economic priorities. Jagannathan assumed office at a pivotal time — shortly after the nationalization of 14 major commercial banks in 1969, a move that fundamentally changed the structure of Indian banking. His appointment reflected the government’s confidence in experienced civil servants who could balance administrative discipline with developmental policy.

Legacy: Jagannathan’s term was marked by an ambitious agenda of expanding financial inclusion and strengthening institutional frameworks in a newly nationalized banking environment. The RBI, under his stewardship, worked closely with the government to direct credit toward priority sectors such as agriculture, small-scale industries, and export promotion. He also guided the central bank through the early years of India’s planned economic development during the Fourth and Fifth Five-Year Plans. On the monetary front, Jagannathan dealt with rising inflation and the complexities of managing a mixed economy characterized by limited foreign exchange reserves and strong government involvement. His tenure also coincided with the oil price shocks of the early 1970s, which posed new challenges to monetary stability. Despite these pressures, he maintained a steady course that emphasized developmental banking and financial discipline.

Banknotes: Jagannathan’s signature appears on ₹2 (tiger reverse), ₹5 (deer and tractor), ₹10 (sailboat and peacock), ₹20 (Parliament House and Chariot Wheel — first issue for Republic India), ₹50 (Parliament House without flag — first issue for Republic India), and ₹100 (dam and agriculture). His tenure introduced the first ₹20 and ₹50 notes of independent India, marking a key milestone in currency diversification.

N. C. Sen Gupta

Term: 19 May 1975 – 19 August 1975

Background: Nirmal Chandra Sen Gupta was the eleventh Governor of the Reserve Bank of India. A career civil servant and Deputy Governor before his appointment, Sen Gupta served as interim Governor following S. Jagannathan’s retirement. His brief tenure of three months occurred during a turbulent period in India’s political and economic history — the declaration of the Emergency in 1975.

Legacy: Although his time in office was short, Sen Gupta’s stewardship was marked by administrative continuity and stability. The RBI’s role during this period was sensitive, given the concentration of political power and the emphasis on state-led control of economic activity. Sen Gupta ensured the uninterrupted functioning of the central bank and oversaw monetary operations at a time when inflationary pressures were rising due to global commodity volatility. His administrative steadiness helped preserve institutional integrity amid uncertainty.

Banknotes: Due to the brevity of his tenure, Sen Gupta’s signature appears only on the ₹1000 denomination, a note that would soon be withdrawn following the 1978 demonetization.

K. R. Puri

Term: 20 August 1975 – 2 May 1977

Background: K. Ramaswami Puri, the twelfth Governor of the Reserve Bank of India, came from a strong background in the financial services sector. Before his appointment, he had served as Chairman of the Life Insurance Corporation of India, where he was credited with improving organizational efficiency and expanding the reach of life insurance across India. His experience in managing a large financial institution made him a natural choice to lead the central bank during a time of intense political oversight.

Legacy: Puri’s governorship spanned much of the Emergency (1975–1977), one of the most politically controlled periods in India’s post-independence history. The RBI’s independence was constrained by centralized decision-making, yet Puri focused on maintaining policy coherence and curbing inflation. He played a key role in managing the monetary consequences of large-scale public sector spending and the financing of development programs. His tenure also preceded a historic turning point — the demonetization of high-value notes in 1978, which would target ₹1000, ₹5000, and ₹10000 denominations. Puri had overseen the issue of some of these denominations, particularly the last large-sized ₹1000 note.

Banknotes: Puri’s signature appears on ₹2 (tiger), ₹5 (tractor), ₹10 (sailboat and peacock), ₹20 (Chariot Wheel), ₹50 (Parliament House without flag), and ₹100 (dam and agriculture). He also signed the final issue of the large-size ₹1000 note, marking the end of an era in Indian high-denomination currency.

M. Narasimham

Term: 2 May 1977 – 30 November 1977

Background: Mallinatha Narasimham became the thirteenth Governor of the Reserve Bank of India. An economist and career RBI official, he had previously served as Executive Director at the International Monetary Fund. His deep understanding of international finance and institutional governance made him an ideal technocrat for a transitional period.

Legacy: Narasimham’s tenure, though only seven months long, came at a time of political change — following the end of the Emergency and the return of a democratic government. The Indian economy faced high inflation and fiscal strain. He emphasized monetary restraint, external stability, and stronger coordination between fiscal and monetary policy. After his brief tenure as Governor, Narasimham went on to leave a lasting mark on India’s financial sector through the Narasimham Committees (1991 and 1998), which ushered in banking reforms, liberalization, and prudential norms that continue to influence Indian banking policy. His short term as Governor thus stands as an early chapter in a career dedicated to systemic reform.

Banknotes: His signature appears on ₹2 (satellite), ₹5 (tractor), ₹10 (sailboat and peacock), ₹20 (Chariot Wheel), ₹50 (Parliament House without flag), and ₹100 (dam and agriculture).

I. G. Patel

Term: 1 December 1977 – 15 September 1982

Background: Dr. Indraprasad Gordhanbhai Patel, the fourteenth Governor of the Reserve Bank of India, was one of India’s most accomplished economists. Educated at the London School of Economics and Oxford University, Patel served as Secretary in the Ministry of Finance and later as Principal of the London School of Economics. His academic credentials and experience in fiscal policy made him an influential voice in both Indian and global economic circles.

Legacy: Patel’s governorship was defined by prudence, intellect, and foresight. He presided over the 1978 demonetization, in which ₹1000, ₹5000, and ₹10000 notes were withdrawn to curb black money circulation. This move, though limited in scale compared to later efforts, reinforced the RBI’s role in promoting transparency and public trust in currency circulation. Beyond demonetization, Patel worked to strengthen the RBI’s policy autonomy and introduced modernization in note printing technology and foreign exchange management. His era coincided with the second oil shock (1979) and rising inflation, challenges he met through cautious monetary policy and improved external debt management.

Banknotes: Patel’s signature appears on ₹2 (tiger and satellite), ₹5 (tractor), ₹10 (sailboat and peacock), ₹20 (Chariot Wheel), ₹50 (Parliament House with and without flag), and ₹100 (dam and agriculture).

Manmohan Singh

Term: 16 September 1982 – 14 January 1985

Background: Dr. Manmohan Singh, the fifteenth Governor of the Reserve Bank of India, was already one of India’s foremost economists before taking charge. He held a D.Phil. from Oxford and had previously served as Secretary in the Ministry of Finance, Chief Economic Adviser to the Government of India, and Director of the Reserve Bank of India. His scholarly background and experience in international institutions such as the United Nations Conference on Trade and Development (UNCTAD) gave him a unique global perspective.

Legacy: Singh’s tenure as Governor occurred at a time when India’s economy was beginning to open slowly toward modernization and structural adjustment. He emphasized better coordination between fiscal and monetary policy, strengthened the RBI’s role in economic planning, and advocated for cautious liberalization of the financial sector. His tenure also oversaw the establishment of mechanisms for credit discipline and institutional strengthening in banking supervision. As inflation and fiscal deficits rose in the early 1980s, Singh’s policies reflected a blend of discipline and pragmatism — qualities that would later define his leadership as Finance Minister in 1991, when he spearheaded India’s economic reforms.

Banknotes: Singh’s signature appears on ₹2 (tiger and satellite), ₹5 (tractor), ₹10 (sailboat and peacock), ₹20 (Chariot Wheel), ₹50 (Parliament House with flag), and ₹100 (agriculture).

A. Ghosh

Term: 15 January 1985 – 4 February 1985

Background: Amitav Ghosh, the sixteenth Governor of the Reserve Bank of India, was a senior career official within the Bank. His appointment followed Dr. Manmohan Singh’s departure and lasted just twenty days — the shortest tenure of any RBI Governor.

Legacy: Despite its brevity, Ghosh’s term ensured continuity in administrative and policy matters during a leadership transition. His long service in the RBI prior to becoming Governor meant that operations continued seamlessly until his successor, R. N. Malhotra, assumed office. His brief tenure stands as a testament to the institutional resilience and depth of leadership within the RBI’s senior ranks.

Banknotes: Ghosh's signature appears on ₹2 (tiger and satellite), ₹5 (tractor), and ₹10 (sailboat).

R. N. Malhotra

Term: 4 February 1985 – 22 December 1990

Background: Rangaswamy Narasimhan Malhotra, the seventeenth Governor of the Reserve Bank of India, was a senior Indian Administrative Service officer with extensive experience in finance and international diplomacy. Before his appointment, he served as India’s Executive Director at the International Monetary Fund, where he gained deep insights into global monetary systems and economic policy coordination.

Legacy: Malhotra’s governorship spanned one of the most significant transitional phases in modern Indian economic history. His tenure was marked by institutional modernization, financial sector reform, and the gradual shift toward market-oriented policies. The RBI during this period began laying the groundwork for the eventual liberalization of the Indian economy in 1991. He played a key role in introducing computerization to the banking sector, improving monetary policy instruments, and strengthening supervision of non-banking financial institutions. Malhotra also oversaw the reintroduction of the ₹500 note in 1987, featuring Mahatma Gandhi’s portrait — a precursor to the Gandhi series that would later define India’s currency identity.

Banknotes: His signature appears on ₹2 (tiger and satellite), ₹5 (tractor), ₹10 (sailboat and peacock), ₹20 (Chariot Wheel), ₹50 (Parliament House with flag), ₹100 (agriculture), and ₹500 (Gandhi portrait — first reintroduced since colonial India).

Conclusion

From 1970 to 1990, the Reserve Bank of India evolved from a post-nationalization authority to a modern central bank shaping the policies of a developing economy. The Governors of this period — from Sarukkai Jagannathan to Rangaswamy Narasimhan Malhotra — guided India through inflation, oil crises, controlled growth, and the early stages of liberalization.

Their legacies reflect the transformation of India’s economic philosophy: from state-directed planning to gradual market orientation. In currency terms, this era bridged the visual and symbolic evolution between the Ashoka Pillar notes and the later Gandhi series. The period stands as a defining era where leadership, policy, and design converged — imprinting the Reserve Bank’s steady hand on the evolving story of India’s financial independence.