S. Venkitaramanan, the former Governor of the Reserve Bank of India (RBI), has passed away at the age of 92. He was a key figure in India’s economic reforms and played a crucial role in navigating the country through the balance of payment crisis of the 1990s. Venkitaramanan served as the RBI Governor from 1990 to 1992, during which he implemented significant reforms and managed the Harshad Mehta scam.
Despite lacking formal qualifications as an economist, Venkitaramanan was chosen for his expertise in the balance of payment situation, which at the time had severely depleted the country’s forex reserves. Before his governorship, he served as the Finance Secretary in the Ministry of Finance from 1985 to 1989. His immediate challenge as the RBI Governor was to address the balance of payment crisis by engaging with other central banks and multilateral institutions to raise foreign currency. The government even had to pledge its gold reserves to manage the crisis.
During his tenure, Venkitaramanan played a pivotal role in crisis management and the implementation of subsequent reforms under the leadership of Manmohan Singh. One of the significant reform measures included the devaluation of the Indian rupee as part of the International Monetary Fund’s stabilisation programme.
Born in Nagercoil, Venkitaramanan held a postgraduate degree in physics from University College Thiruvananthapuram and a master’s degree in Industrial Administration from Carnegie Mellon University in the United States. He served in various capacities in the Indian Administrative Service (IAS), with his notable tenure as the Finance Secretary lasting for four years.
Venkitaramanan faced criticism during the Harshad Mehta scam, which highlighted systemic failures in the government securities market operations. However, this incident led to subsequent reforms in the market.
After retiring from his position as the RBI Governor, Venkitaramanan remained active in various roles, including Chairman of Ashok Leyland Investment Services, New Tirupur Area Development Corporation, and Ashok Leyland Finance. He also served on the boards of companies such as Reliance Industries Limited, SPIC, Piramal Healthcare, Tamil Nadu Water Investment Co., and HDFC.
S. Venkitaramanan’s passing marks the end of an era for India’s financial landscape. His contributions to the country’s economic reforms and crisis management remain significant, leaving a lasting impact on India’s financial sector.
