The Age Of Stars

Reserve Bank (Amendment) Act, 1940 · regulation · 1 March 1940

Statutory reserves amendment following the TNQ default

VerifiedOfficial record. Source: RBIH1 ch. 15

Government of India · 1 January 1940

Government of India recommended to the India Office a larger, elastic sterling-debt repatriation scheme, to be…

Government of India recommended to the India Office a larger, elastic sterling-debt repatriation scheme, to be run through rupee books opened by the RBI for each dated sterling loan

ReportedOfficial record. Source: RBIH1

Reserve Bank of India · 1 November 1940

Reserve Bank of India: India Office initiated large-scale requisitioning of dated sterling loans for cancellation, with rupee finance…

~£90m estimated cost

India Office initiated large-scale requisitioning of dated sterling loans for cancellation, with rupee finance to be provided by ad hoc rupee securities held in the RBI's Issue Department; required amendment of the proviso to s.33(3), RBI Act

ReportedOfficial record. Source: RBIH1

Scheduled banks

Reserve Bank (Amendment) Act, 1940

Statutory reserves amendment, effective March 1940 (the RBIH1 text dates the Act to 1940 with a footnote giving effect from 11 March 1940; a second amendment, the Reserve Bank of India (Second Amendment) Act 1940, Act XIII, took effect 26 March 1940)

VerifiedOfficial record. Source: RBIH1 ch. 15 and index

exchange rate

Sterling purchase rate fixed at 1s 6d

The RBI bought sterling at 1s 6d (Rs 1 = 1s 6d) from January 1940 to the end of the war; the fixed rate made currency expansion automatic against sterling accruals

VerifiedOfficial record. Source: RCF4344