Now the question here is, if England was present in the US and ruled India for around 100 years, how did we escape the Private Central Reserve and have a government Reserve Bank which we proudly call as the Reserve Bank of India.
This revolution happened because a guy submitted his PhD thesis to the chief economist of the UK at that time with title of his thesis as Problem of the Rupee, the Problem and Resolution and the name of this person is Dr. Bhimrao Ramji Ambedkar.
The Reserve Bank of India was established on the basis of the resolution points given by Dr. Ambedkar in his PhD thesis.
Most of the European countries now are in economic troubles because of their banking system. Banks lending out money to people who cannot repay. In this process the Bank earns the profit that they don’t care if the country falls in economic crises.
The Reserve Bank of India was founded on 1 April 1935 to respond to economic troubles after the First World War. RBI was conceptualized as per the guidelines, working style and outlook presented by Dr. B R Ambedkar as written in his book “The Problem of the Rupee – Its origin and its solution.” in front of the Hilton Young Commission. The bank was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also known as the Hilton-Young Commission”
The Fed considers the Federal Reserve System “an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.”
It clearly says that the Federal Reserve has nothing to do with the US Govt. and Legislation. Its operations are completely independent and they do not have to ask anyone if they wish to change the operational policy. If they wish they can stop lending loans to the US Govt. anytime without giving any explanations to anyone.
“The general superintendence and direction of the RBI is entrusted with the 21-member Central Board of Directors: the Governor (Dr. Raghuram Rajan), 4 Deputy Governors, 2 Finance Ministry representatives, 10 government-nominated directors to represent important elements from India’s economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.”
The Board of directors includes a strategist, called as Governor and the FINANCE MINISTRY. There is no private stakeholder of the RBI and it operates with the aim of the economic development of the country. The sole aim of the Federal Reserve is making profit for the private stakeholders where’s the aim of the RBI is the economic development of the nation and not profit.
I have no idea about all the resolution points given by him, but the formation a central Govt. Reserve (RBI) to control the country currency is one of them. Here is some more info on the cause and effects of a private central reserve.
The first president of the United Stated that almost got rid of the private Federal Reserve was Andrew Jackson. In 1832, Jackson ran for presidential election with the motto “Jackson and no Banks”
A part of the Jackson speech is given below:
“It is not our own citizens only who are to receive the bounty of our Government. More than eight millions of the stock of this bank are held by foreigners… Is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country?
Controlling our currency, receiving our public moneys and holding thousands of our citizen’s dependence… would be more formidable and dangerous than a Military Power of the enemy.”
Ambedkar was well aware of the intentions of the Bank of England. The English knew that even if they lose their rule in India, they still would be able to control the country by ruling their economy thus making the nation an economic slave. If they rule the economy, and our nation was attacked we would have to rely on the English for Money to finance the war. If they bank refused to loan out money to the Govt. we were bound to lose the war.
Ambedkar thought it through, he did not expect only the democratic freedom for his people but also the economic freedom to its citizens so that our nation is a free nation in a true sense.