Description

The period since 1939, is of special significance in the history of money and exchange in India. During the Second World War, the policies regarding money and exchange had to be subordinated paramount need of var finance. to The Reserve Bank of India had to be armed with more and more power for effective and rigid control of credit and foreign exchange. It became clear that the Reserve Bank of India has to function in alone coordination with the Government of India and its activities must be directed in furtherance of the Government policies, motivated by the support to allied war efforts.