| Date |
Event |
| Dec
1967 |
Introduction of Social
Controls over banks with a view to securing a better alignment of
the banking system to the needs of economic policy. |
| 22
Dec 1967 |
National
Credit Council set up to provide a forum to discuss and assess
credit priorities on an all India basis. Council was to assist RBI
and government to allocate credit. |
| 01 Apr
1968 |
Quarternary Alloy Rupee
Coins demonetised. |
| 01
Sep 1968 |
Gold
(Control) Act passed to bring the administration of the control on a
permanent statutory footing.
(see: 1966 Gold Control Rules) |
| 1968 |
Export Credit (Interest
Subsidy) Scheme, 1968 introduced to promote exports. Pre-shipment
Credit Scheme introduced wef Jan 1969 as an export promotion
measure. This allowed banks to get refinance from the Reserve Bank. |
| 29
Jan 1969 |
Setting up
of the Banking Commission by GOI to report on (i) Banking costs; (
ii) legislations affecting banking; (iii) indigenous banking; (iv)
bank procedures; (v) non banking financial intermediaries. |
| 01 Feb
1969 |
Gold Holdings of RBI
revalued at the current official IMF rate of 0.118489 grammes of
fine gold per rupee (to take into account the devaluation of the
Rupee by 36.5 % in June 1966) The profit on revaluation transferred
to the reserve fund. |
| 19
Jul 1969 |
14 major
Indian Scheduled Commercial Banks with deposits of over Rs 50 crores
nationalised ' to serve better the needs of development of the
economy in conformity with national policy objectives'.
On February 10, 1970 the Supreme Court held the Act void mainly on
the grounds that it was discriminatory against the 14 banks and that
the compensation proposed to be paid by Govt was not fair
compensation.
A fresh Ordinance was issued on February 14 which was later replaced
by the Banking Companies (Acquisition and Transfer of Undertakings )
Act, 1970.
(5 of 1970). |
| 24 Sep
1969 |
National Institute of Bank
Management (NIBM) established at Bombay (Mumbai). Shifted to its
Pune campus in the mid 1980s. |
| 29
Sep 1969 |
Cooperative
Bankers Training College (CBTC) established at Poona (Pune) to
provide training to the cooperative sector. Later renamed College of
Agricultural Banking (CAB) in 1974. |
| Dec
1969 |
Lead Bank Scheme introduced
which envisaged an area approach to banking to meet the credit gaps
in the economy. |
| 01
Jan 1970 |
Special
Drawing Rights (SDR) created by the IMF to enhance international
liquidity. |
| Jan
1970 |
RBI prescribed for the first
time the minimum interest rate to be charged by banks on advances
against sensitive commodities. |
| Feb
1970 |
The
Agricultural Credit Board set up with Governor as Chairman to
formulate and review policies in the sphere of rural credit. |
| 03 Apr
1970 |
The Managing Agency system
abolished by the Companies Amendment Act, 1969. |
| 04
May 1970 |
B.N.
Adarkar appointed Governor till June 15 |
| 16 Jun
1970 |
S. Jagannathan appointed
Governor. |
| Between
Feb & Aug 1970 |
Inflationary
trends led to concern and strong measures including increasing bank
rate and raising SLR from 25 to 28%. |
| 01 Nov
1970 |
New Bills Rediscounting
Scheme introduced was expected to impart flexibility to the Money
Market, even out liquidity within the banking system and enable the
Reserve Bank to exercise more effective control over the money
market. |
| 14
Jan 1971 |
Credit
Guarantee Corporation of India Ltd. established. To facilitate bank
lendings to the priority sectors. It guaranteed credit extended by
scheduled commercial banks to small borrowers and for other priorty
purposes. |
| 12 Apr
1971 |
Concerns related to
Industrial sickness led to the establishment of the Industrial
Reconstruction Corporation of India Ltd. |
| 01
Jul 1971 |
Deposit
Insurance cover extended to cooperative banks. |
| 15 Aug
1971 |
Convertibility of USD
suspended. This brought to an end the system of fixed exchange rates
embodied in the Bretton Woods System. After an interim arrangement
which lasted up to 1973, the world shifted to a floating exchange
rate regime. |
| Oct
1971 |
State
Level Bankers’ Committees set up to consider problems requiring
inter-bank coordination. |
| |
Hindi Version of RBI Annual
Report and Trend and Progress of Banking in India for the year ended
30 June, 1971. |
| 25
Mar 1972 |
Differential
Interest Rate Scheme Introduced which envisaged concessional
interest rates on advances made by Public Sector Banks to selected
low income groups. |
| 03 Apr
1972 |
Import Policy for 72-73
stressed the importance of achieving self reliance reflecting the
views of the times. |
| 03
Nov 1972 |
Special
payment arrangements with the erstwhile COMECON group of countries
where payments were settled in rupees through bilateral trade which
was a type of barter arrangement. |
| 1973 |
"Oil Shock" when
oil prices quadrupled. This led to double digit inflation as well as
global recession.
As a response the Bank deployed a series of restricted measures to
contain / moderate the expansion of bank credit.
Call money rate rose to an all time high of 30% prompting the Indian
Banks' Association to intervene and fix a ceiling of 15%. |
| 01
Sep 1973 |
Miscellaneous
Non Banking Companies (Reserve Bank) Direction, 1973 sought to
regulate the acceptance of deposits by companies conducting prize
chits, lucky draws savings schemes, etc. |
| 08 Sep
1973 |
Quantitative credit ceiling
on non food bank credit prescribed for the first time for the busy
season of 1973-74. |
| Nov
1973 |
Restrictions
on SBI and its subsidiaries removed to bring them on par with other
commercial banks. |
| 01 Jan
1974 |
Foreign Exchange Regulation
Act, 1973 came into force to conserve foreign exchange. Its
administration was entrusted to the Reserve Bank. |
| 09
Dec 1974 |
Asian
Clearing Union (ACU) established to facilitate payments for current
international transactions on a multilateral basis. Clearing
operations were to be denominated in member’s currency or AMU
which would be equivalent to 1 SDR. Clearing operations commenced
November, 1975. |
| 13 Dec
1974 |
Reserve Bank of India
(Amendment) Act, 1974 widened the powers of the Bank. |
| 19
May 1975 |
N. C.
Sengupta appointed governor up to August 19. |
| 09 Aug
1975 |
Tandon Committee Report
emphasized need to correlate bank credit to the business/ production
plans and own resources of borrowers. Entailed a shift from
‘security based’ to ‘need based’ approach to bank credit.
The new norms formed the basis of bank lending for working capital
requirements. |
| 20
Aug 1975 |
K.R. Puri
appointed governor |
| 25 Sep
1975 |
Exchange value of Rupee
linked to movements in a basket of selected foreign currencies
(major trading partners) |
| 26
Sep 1975 |
Regional
Rural Banks were set up as alternative agencies to provide credit to
rural people in the context of the 20 Point Programme.These were
expected to "combine the rural touch and local feel, ……with
the modern business organisation…”. |
| 01 Nov
1975 |
Foreign Currency (Non
Resident) Account Scheme introduced in USD and GBP To encourage
private remittance from abroad. |
| 16
Nov 1975 |
Agricultural
Refinance Corporation (ARC) renamed Agricultural Refinance and
Development Corporation (ARDC) and its activities widened. |
| 1975 |
20 point economic programme
introduced. |
| 01
Feb 1976 |
Duty Draw
back credit scheme introduced as an export promotion measure. |
| 1976 |
Village Adoption Scheme for
banks introduced. |
| Apr
1977 |
A new
series of Money supply introduced the concepts of M1, M2, M3 etc.
Money supply with the public consisted of
(a) currency with the public,
(b) demand deposits of all commercial banks, of state, central and
urban cooperative banks and of salary earners societies, and
(c) ‘Other deposits with Reserve Bank of India’. |
| 02 May
1977 |
M. Narasimham appointed
Governor up to November 30. |
| 1977 |
Integrated
Rural Development Programme (IRDP) initiated as a poverty
alleviation measure. |
| 01 Dec
1977 |
I.G. Patel appointed
Governor. |
| 16
Jan 1978 |
Notes of
Rs 1,000/-, Rs 5,000/- and Rs 10,000/- denominations demonetised to
curb ‘the illicit transfer of money for financing transactions
which are harmful to the national economy…’. |
| 03 May
1978 |
RBI commenced gold auctions
on behalf of Government of India out of government stock at
fortnightly intervals. |
| 27
May 1978 |
The
Deposit Insurance Corporation (DIC) took over the undertaking of the
Credit Guarantee Corporation of India Ltd. (CGCI) to form the
Deposit Insurance and Credit Guarantee Corporation (DICGC) wef July
15, 1978. |
| 03 June
1978 |
RBI Act amended. The
amendments were made mainly to enable the more effective utilization
of foreign exchange reserves. |
| 12
Dec 1978 |
Prize Chit
and Money Circulation Schemes (Banning) Act, 1978 came into force
wef 12 December, 1978. |
| 1978 |
Annual Appraisal of Banks
introduced in the nature of management audit introduced. Emphasis
mainly on the examination of the organizational set-up, manpower
planning , machinery for supervision and control over branches,
systems & procedures in key areas, funds management and
management of credit. |
| 30
Mar 1979 |
Penalty
for non-compliance of CRR & SLR introduced to give the Reserve
Bank teeth to implement Monetary Policy measures more effectively. |
| 1979 |
Rural Planning and Credit
Cell set up in the Reserve Bank of India to ensure proper
implementation of the multi-agency approach to credit in rural
areas. |
| Aug
1979 |
Credit
Information Review started being published every month To
disseminate in simple language and without delay the credit and
banking policy decisions of the Reserve Bank. |
| 17 Jan
1980 |
International gold prices
soar to all time highs. |
| Mar
1980 |
Banks
required to provide financial support to implementation of 20 point
programme to improve lot of weaker sections. |
| |
Sixth Five Year Plan. |
| 15
Apr 1980 |
Six
private sector banks nationalised “…in order further control the
heights of the economy, to meet progressively, and serve better, the
needs of the development of the economy and to promote the welfare
of the people in conformity with the policy of the State…” |
| Dec
1980 |
Recommendations of Chore
Committee related to the cash credit system, adopted. Emphasis on
increasing contribution for working capital requirements by
borrowers out of internal resources. |
| 01
Jan 1981 |
Neighbourhood
Travel Scheme (NTS) introduced. |
| 15 Jan
1981 |
GOI announced special bearer
bond To mop up unaccounted money and channelise it to productive
purposes. |
| Apr
1981 |
Major
Organisational internal restructuring in the Reserve Bank. New
Departments set up. |
| 1981 |
Build up of inflationary
pressures and adverse movement in foreign trade following the hike
in oil prices. Bank rate raised to 10%, CRR raised to 7.5%, SLR to
35%. |
| 11
Juy 1981 |
Ordinance
prohibiting companies (including Banking Companies) cooperative
societies, firms, to repay any person any deposit otherwise than by
an account payee cheque / bank draft when such repayment amounted to
Rs. 10,000 or more. |
| 01 Jan
1982 |
Export Import Bank of India
established with the objective of providing comprehensive package of
financial and allied services to exporters and importers. |
| 01
Jan 1982 |
New 20
point programme announced by the PM. |
| 12 July
1982 |
National Bank for
Agriculture and Rural Development (NABARD) established on the basis
of the National Bank for Agriculture and Rural Development Act,
1981. ‘…For providing credit for the promotion of agriculture,
small scale industries, cottage and village industries, handicrafts,
and other rural crafts for promoting integrated rural development
and securing rural prosperity…’. |
| 16
Sep 1982 |
Manmohan
Singh appointed Governor. |
| 1983 |
C D Deshmukh Memorial
Lecture introduced as an annual event in Governor Deshmukh's honour |
| Nov
1983 |
National
Clearing Cell (NCC) set up by the bank to introduce mechanised
cheque processing and the national clearing of cheques. |
| 12 Jan
1984 |
Banking Laws (Amendment)
Act, 1983 widened the activities that banks could undertake (such as
leasing), provided nomination facilities to account holders,
strengthened the powers of the Reserve Bank, streamlined returns and
prohibited unincorporated bodies from accepting deposits from the
public except to a specified extent amongst others. |
| 01
Feb 1984 |
Urban
Banks Department formed to supervise the affairs of Urban
Cooperative Banks. |
| 01 May
1984 |
Authorised capital of the
Deposit Insurance and Credit Guarantee Corporation raised to Rs 50
crores |
| 15 Jan
1985 |
A Ghosh appointed Governor
up to February 4 |
| 04
Feb 1985 |
RN
Malhotra appointed Governor |