Economics and Business
ISSN 2775-9237 (Online)
Published: 14 December 2020
The Monetary Crisis and Foundation for Reserve Bank of India (1890-1935)
Indian Institute of Technology Madras, India
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Keywords: British India, Monetary System, Council Bill System, Gold Exchange Standard
The monetary policy of British India was highly controversial during the interwar period as it aimed to protect the budgetary obligations and private commerce. The currency stabilization policy was seen as a tool to protect the British economic interest while they ruled India. The currency came under serious pressure during the World War I and Great depression, the facets of Indian currency’s dependence was exposed through the modified council bill system and Gold exchange standard. The much-needed currency reforms and banking system were conceded by the colonial administration after much wrangling for half a century.
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