Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 14 December 2020

The Monetary Crisis and Foundation for Reserve Bank of India (1890-1935)

M. Balaji

Indian Institute of Technology Madras, India

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Pages: 1572-1578

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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