INDIAN RESERVE BANK
FINANCIAL SAFEGUARD
CREDIT AND CURRENCY
(British Official Wireless.) RUGBY, August 16; The report of thu committee on Indian Reserve Bank legislation, issued hi a White Paper last night, recommends provisions for creating an Indian Reserve Bank. A Bill is to "bo presented to the Indian legislature in September, and ■will probably bo referred to a select committee, which will report to a special session in November. It is hoped that the Bill will be passed before tho end of the year. It is considered that the establish- ( mont of the bank .is an important fin'ancinl safeguard -to ensure confidence in tho future management of Indian; credit and currency in view of the changed conditions contemplated under the proposed Federal Constitution. The committee, under the presidency of Sir Reginald Mant, takes tho principles of the 1928 Bill as a basis, and recommends the organisation of tho bank on lines similar to other central banks in the Empire. On the principle that the bank should bo free from political influence, tho capital is to be held by private shareholders. Shares will bo 500 rupees each, and no shareholder may exercise more than tea votes. India, including Burma, is to bo divided into five areas, with hoa.ilfluartors at Bombay, Calcutta, Delhi, Madras, and Rangoon, and the capital; of tho bank, in five unequal portions,: will be offered for subscription in these: areas. Local boards and a central, board of eight regional directors, in addition to a governor and deputy-; governors, are provided for. Tho establishment of a London branch is considered optional. The Governor is to be appointed by tho Govcrnor-General-iiirCouncil. The, committee recommends that India: remain on tho sterling standard as at present, at loast until tho international monetary position is clearer. Tho note-issuing department, which is to be separate from the banking depart-; ment, is to have gold and sterling for over 50 per cent, of its note liabilities.
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Bibliographic details
Evening Post, Volume CXVI, Issue 42, 18 August 1933, Page 7
Word Count
321INDIAN RESERVE BANK Evening Post, Volume CXVI, Issue 42, 18 August 1933, Page 7
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