The Age Of Stars

Gold Standard and Reserve Bank Bill · 1 January 1927

Gold Standard and Reserve Bank Bill: First Reserve Bank Bill introduced in the Indian Legislative Assembly

VerifiedOfficial record. Source: ICBEC1931 ch. III §39; RBIH1 ch. 1

Imperial Bank of India · 1 March 1927

Imperial Bank of India Bill introduced; passed September 1920 (see 1921)

VerifiedOfficial record. Source: RBIH1 ch. 1

Gold Standard and Reserve Bank Bill · 8 September 1927

Gold Standard and Reserve Bank Bill: Bill withdrawn by Government

VerifiedOfficial record. Source: RBIH1 ch. 1

Reserve Bank of India (proposed) · 8 September 1927

Reserve Bank of India (proposed): The Gold Standard and Reserve Bank Bill, based on the Hilton Young Report, was withdrawn after the Joint…

Bill withdrawn; censure motion carried 13 Sep 1927

The Gold Standard and Reserve Bank Bill, based on the Hilton Young Report, was withdrawn after the Joint Committee's majority recommended a wholly state-owned bank and the Finance Member refused that basis

VerifiedOfficial record. Source: RBIH1 pp. 27–33

Bengal National Bank · scandal

Bengal National Bank: Five out of six directors became heavily indebted to the bank; one director alone obtained a loan of Rs 3 lakh…

unsecured loans Rs 50 lakh against deposits Rs 81 lakh; not more than Rs 60 lakh of assets recoverable

Five out of six directors became heavily indebted to the bank; one director alone obtained a loan of Rs 3 lakh "against no security of any kind"; two of the moving spirits procured unsecured accommodation for their friends; officers and even the auditors had overdrafts. With deposits of Rs 81 lakh, unsecured loans reached Rs 50 lakh. Withdrawals began in April 1927 and the bank closed.

ReportedPeer-reviewed. Source: Muranjan, Modern Banking in India, pp. 301–303

RBI constitution

Gold Standard and Reserve Bank Bill

First Bill. Provided for a shareholders' bank. Joint Committee opposed a shareholders' bank and proposed electing three Directors by the Central Legislature and three by the Provincial Legislatures

VerifiedOfficial record. Source: RBIH1 ch. 1

RBI constitution

Blackett compromise scheme

Nominal value of each share reduced from Rs 500 to Rs 100; preference to shareholders domiciled or ordinarily resident in India; preference to Imperial Bank shareholders dropped; dividend fixed lower at 6 per cent against 8 per cent originally; only five shareholder Directors to be Government-nominated, with two each to FICCI and the Associated Chambers of Commerce

VerifiedOfficial record. Source: RBIH1 ch. 1

RBI constitution

Stock-holders' Scheme" (electoral colleges)

Under S. Srinivasa Iyengar's scheme (called the Stock-holders' Scheme): Government of India 5 per cent Reserve Bank stock issued at par in amounts of Rs 100 and multiples; maximum holding limited to Rs 10,000; every holder one vote; holders to be domiciled or ordinarily resident in India; a register kept in each major Province; where a register had at least 1,000 stockholders they elected, triennially, sixty trustees who elected ten Directors

VerifiedOfficial record. Source: RBIH1 ch. 1 p. 32 n. (citing O. P. Gupta, Central Banking in India, 1773–1934)

exchange rate

Indian Currency Act 1927 and the 1s 6d ratio

The rupee was stabilised at 1s 6d (Rs 13⅓ = £1), a ratio below both the 1s 4d of 1899-1917 (in gold terms after the general return to gold) and well below the 2s recommended by Babington Smith in 1920. Not verified in this session: I did not open the Hilton Young Report or the 1927 Act, so this row is recorded as the established outcome, not as a figure read from a source

UnconfirmedOfficial record. Source: not found in this session, see Gaps