Former RBI Governor S. Venkitaramanan passes away: Remembering a stalwart in India's economic landscape
By Sunita Iyer | First Published Nov 18, 2023, 3:15 PM ISTS. Venkitaramanan's legacy is one of resilience, strategic thinking, and steadfast leadership. His contributions have left an enduring impact on the financial sector in India, and his life serves as an inspiration for those navigating the complex world of banking and finance.
S. Venkitaramanan, the former Governor of Reserve Bank of India (RBI), passed away at the age of 92 in Chennai on Saturday after a brief illness. He is survived by two daughters, Girija and Sudha and their families. S. Venkitaramanan, the 18th Governor of the Reserve Bank of India, served in this role for two years from December 1990 to December 1992. Before his tenure as RBI Governor, he held the position of Finance Secretary in the Ministry of Finance from 1985 to 1989.
S. Venkataramanan passes away. Arguably the best RBI governor. Crisis manger whose decisive actions helped India to tide the balance of payments crisis in the late 1980s and early 1990s. That was a time when India was scraping the bottom of FE reserves. RIP pic.twitter.com/GsxiQBfzVF
— N.S. Madhavan (@NSMlive)S. Venkitaramanan, an eminent economist and bureaucrat, has left an indelible mark on India's economic history through his distinguished service. Venkitaramanan is widely regarded as an adept crisis manager, particularly during the balance of payments crisis in India in the late 1980s and early 1990s. His prompt and decisive actions were instrumental in laying the groundwork for India's recovery from the crisis, a period when the country's foreign-exchange reserves were nearly depleted.
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Venkitaramanan was born on January 28, 1931, in the town of Nagercoil in the Padmanathapuram division of the princely state of Travancore, into a Tamil Iyer family. He obtained his master's degree in physics from the University College Thiruvananthapuram, Kerala. Additionally, he earned a master's degree in Industrial Administration from Carnegie Mellon University in Pittsburgh, USA.
Venkitaramanan joined the Indian Administrative Service (IAS) in 1952, marking the beginning of a dedicated civil service career that spanned several decades. His initial assignments in the state of Madras (now Tamil Nadu) provided him with a deep understanding of administrative intricacies and economic challenges at the grassroots level.
Venkitaramanan's pivotal role in Indian finance came to the forefront during his tenure as the Finance Secretary in the Ministry of Finance from 1985 to 1989. However, it was his term as the 18th RBI Governor from December 1990 to December 1992 that solidified his reputation as a brilliant crisis manager.
Role at the RBI
During the late 1980s and early 1990s, India faced a severe balance of payments crisis. At that critical juncture, Venkitaramanan's timely and decisive actions played a crucial role in steering the country through the crisis.
Venkitaramanan assumed the office of the RBI Governor in December 1990, a period marked by significant economic reforms and challenges. He played a crucial role in steering the country through the liberalization process initiated by then-Finance Minister Dr. Manmohan Singh.
As the head of India's central banking institution, he focused on maintaining monetary stability, enhancing financial resilience, and fostering economic growth.
Landmark Decisions
Venkitaramanan's tenure witnessed the initiation of economic reforms, which later gained momentum in the early 1990s. The liberalization policies aimed at opening up the Indian economy, encouraging foreign investment, and fostering a more competitive environment.
Addressing the balance of payments crisis, Venkitaramanan took measures to stabilize the exchange rate. His pragmatic approach included the devaluation of the Indian rupee, which contributed to a more competitive export environment.
The period also saw significant strides in financial sector reforms, with efforts to strengthen the banking system and enhance its efficiency. Venkitaramanan focused on improving the regulatory framework and promoting transparency within financial institutions.
Recognizing the importance of price stability, Venkitaramanan implemented measures to curb inflation. His commitment to maintaining a stable economic environment contributed to the overall resilience of the Indian economy.
One of the notable events during his tenure was the exposure of the infamous Harshad Mehta scam by financial journalist Sucheta Dalal. Venkitaramanan navigated the challenges posed by this financial scandal, showcasing his acumen in crisis management.
Also read: India’s overall exports grow 9.43% in October 2023 to touch $62.26 billion
Legacy and post-RBI contributions
Post his illustrious career at the RBI, Venkitaramanan continued to contribute to the financial sector. He served as the Chairman of Ashok Leyland Investment Services Ltd., New Tirupur Area Development Corporation Ltd., and Ashok Leyland Finance Ltd. His expertise also extended to the boards of prominent companies like Reliance Industries Limited, SPIC, Piramal Healthcare Ltd, Tamil Nadu Water Investment Co. Ltd, and Housing Development Finance Corp. Ltd.
Beyond his professional accomplishments, Venkitaramanan's influence extended to his family. His daughter, Girija Vaidyanathan, achieved distinction as a 1981 Tamil Nadu cadre Indian Administrative Service officer. Notably, she served as the Chief Secretary of Tamil Nadu, contributing to the state's governance.
S. Venkitaramanan's legacy is one of resilience, strategic thinking, and steadfast leadership. His contributions have left an enduring impact on the financial sector in India, and his life serves as an inspiration for those navigating the complex world of banking and finance.
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