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Bhala, Raj --- "Reserve Bank of India" [2018] ELECD 318; in Conti-Brown, Peter; Lastra, M. Rosa (eds), "Research Handbook on Central Banking" (Edward Elgar Publishing, 2018) 68

Book Title: Research Handbook on Central Banking

Editor(s): Conti-Brown, Peter; Lastra, M. Rosa

Publisher: Edward Elgar Publishing

ISBN: 9781784719210

Section: Chapter 5

Section Title: Reserve Bank of India

Author(s): Bhala, Raj

Number of pages: 26

Abstract/Description:

In the post-British Raj Era, financial liberalization is a hallmark of Indian banking regulation. The RBI is a focal point for change. The pace of change, however, is measured thanks to the legacy of Nehruvian Socialist-style controls, and to the complexity of Indian bank structure. Both payments and FX regulation exemplify this cautious approach to legal and policy reform. Underlying financial liberalization are long-held suspicions in India about freewheeling western-style banking markets. The RBI seeks to develop a modern banking system while ensuring the poor and emerging middle class are not financially excluded from that system. That means the cautionary approach to reform that has characterized the RBI will endure.