Y. Venugopal Reddy
Encyclopedia
Dr. Yaga Venugopal Reddy , better known as Y.V. Reddy, (born 17 August 1941 in Kadapa
, Andhra Pradesh
) is an Indian Administrative Service
(IAS) officer of the 1964 batch who served as Governor of the Reserve Bank of India
(RBI) (India
's central bank
) from 6 September 2003 until 5 September 2008.
In 2010, he was awarded India's second highest civilian honour, the Padma Vibhushan
.
. He holds a Ph.D.
from Osmania University
, Hyderabad. He also holds a Diploma in Economic Planning from the Institute of Social Studies
, Netherlands
.
Reddy was awarded Doctor of Letters (Honoris Causa) by Sri Venkateswara University
, India; and Doctor of Civil Law (Honoris Causa) by the University of Mauritius.
On 17 July 2008 Reddy was made an Honorary Fellow of the London School of Economics
.
In 1996, Reddy had been appointed deputy governor of RBI. He has also worked with the International Monetary Fund
as Executive Director
in 2002. Prior to joining the IAS, he worked as a lecturer
from 1961.
Reddy was Chairman of the Bank for International Settlements
, Asian Consultative Council (ACC) for a term of two years from March 2007. He was the Chairperson of SAARCFINANCE, a Group of Governors of the central banks of SAARC member countries. He has held the positions of Secretary (Banking) in Ministry of Finance and Principal Secretary in Government of Andhra Pradesh
and has worked with the governments of China
, Bahrain
, Ethiopia
and Tanzania
. He has been a Visiting Fellow, London School of Economics and Political Science, a full-time UGC
Visiting Professor in Department of Business Management, Osmania University
; full-time Visiting Faculty, Administrative Staff College of India and continues to be the Honorary Senior Fellow at Centre for Economic and Social Studies at Hyderabad.
Reddy was previously Deputy Governor of the RBI for 6 years and was succeeded by Dr. Rakesh Mohan.
and the other on Public Sector disinvestments. Dr. C. Rangarajan, former Governor, Reserve Bank of India headed both the committees. Reddy was also a member of the Reserve Bank of India's Policy Group on External Debt Statistics. Reddy is credited to have played a crucial role in framing macro-economic policies that helped quarantine the country from the domino effect
of the financial crisis encountered by the South-East Asian countries during the later part of the 1990s. He, along with Dr. C. Rangarajan, is also credited with the formulation of the course to be steered by the country to come out of the then Balance of Payments crisis.
As Governor, he saw his job as making sure Indian banks did not get too caught up in the bubble mentality. He banned the use of bank loans for the purchase of raw land, and sharply curtailed securitizations and derivatives, and essentially prohibited off-balance sheet financing. He increased risk weightings on commercial buildings and shopping mall construction and increased bank reserve requirements.
Less well-discussed is his work on rural banking, particularly on reviving co-operative banks and his focus on the common person. His term was marked by an emphasis on financial inclusion with the aid of information technology. He recently authored a book titled "India And The Global Financial Crisis : Managing Money and Finance" published by Orient Blackswan. He is widely consulted on many financial issues by institutions both in India as well as the world over.
Kadapa
Kadapa , formerly Cuddapah, is a city in the south-central part of Andhra Pradesh, India . The city's name originated from the Telugu word "Gadapa" meaning threshold or gate...
, Andhra Pradesh
Andhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...
) is an Indian Administrative Service
Indian Administrative Service
The Indian Administrative Service is the administrative civil service of the Government of India. It is one of the three All India Services....
(IAS) officer of the 1964 batch who served as Governor of the Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
(RBI) (India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
) from 6 September 2003 until 5 September 2008.
In 2010, he was awarded India's second highest civilian honour, the Padma Vibhushan
Padma Vibhushan
The Padma Vibhushan is the second highest civilian award in the Republic of India. It consists of a medal and a citation and is awarded by the President of India. It was established on 2 January 1954. It ranks behind the Bharat Ratna and comes before the Padma Bhushan...
.
Education and honors
Reddy received his M.A. in economics from Madras Universityramakrishna mission vivekananda college mylapore, IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. He holds a Ph.D.
Ph.D.
A Ph.D. is a Doctor of Philosophy, an academic degree.Ph.D. may also refer to:* Ph.D. , a 1980s British group*Piled Higher and Deeper, a web comic strip*PhD: Phantasy Degree, a Korean comic series* PhD Docbook renderer, an XML renderer...
from Osmania University
Osmania University
Osmania University , , since 1918, is a public university located in Hyderabad, Andhra Pradesh, India. It was established and named after the last Nizam of Hyderabad, Mir Osman Ali Khan. It is one of the oldest modern universities in India. It is the first Indian University to have Urdu and...
, Hyderabad. He also holds a Diploma in Economic Planning from the Institute of Social Studies
Institute of Social Studies
The International Institute of Social Studies of Erasmus University Rotterdam in The Hague is a unique, independent and international graduate school in the social sciences...
, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
.
Reddy was awarded Doctor of Letters (Honoris Causa) by Sri Venkateswara University
Sri Venkateswara University
Sri Venkateswara University, Tirupati, is a state university, which was established in 1954, in the famous temple city of Tirupati, South India, under the auspices of Late Tanguturi Prakasam Pantulu, the chief minister of Andhra Pradesh, and with support of Tirumala Tirupati Devasthanams...
, India; and Doctor of Civil Law (Honoris Causa) by the University of Mauritius.
On 17 July 2008 Reddy was made an Honorary Fellow of the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
.
Positions held
Venugopal Reddy was appointed the twenty-first Governor of the Reserve Bank of India on 6 September 2003. Jaswant Singh was India's Finance Minister and took that decision, mentioning it in his autobiography.In 1996, Reddy had been appointed deputy governor of RBI. He has also worked with the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
as Executive Director
Executive director
Executive director is a term sometimes applied to the chief executive officer or managing director of an organization, company, or corporation. It is widely used in North American non-profit organizations, though in recent decades many U.S. nonprofits have adopted the title "President/CEO"...
in 2002. Prior to joining the IAS, he worked as a lecturer
Lecturer
Lecturer is an academic rank. In the United Kingdom, lecturer is a position at a university or similar institution, often held by academics in their early career stages, who lead research groups and supervise research students, as well as teach...
from 1961.
Reddy was Chairman of the Bank for International Settlements
Bank for International Settlements
The Bank for International Settlements is an intergovernmental organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." It is not accountable to any national government...
, Asian Consultative Council (ACC) for a term of two years from March 2007. He was the Chairperson of SAARCFINANCE, a Group of Governors of the central banks of SAARC member countries. He has held the positions of Secretary (Banking) in Ministry of Finance and Principal Secretary in Government of Andhra Pradesh
Andhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...
and has worked with the governments of China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
, Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
and Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
. He has been a Visiting Fellow, London School of Economics and Political Science, a full-time UGC
UGC
UGC is the second largest cinema operator in Europe with, as of August 2005, 49 sites and 553 screens across four countries:* France: 37 cinemas, 357 screens* Spain: 5 cinemas, 88 screens* Belgium: 3 cinemas, 43 screens* Italy: 4 cinemas, 66 screens...
Visiting Professor in Department of Business Management, Osmania University
Osmania University
Osmania University , , since 1918, is a public university located in Hyderabad, Andhra Pradesh, India. It was established and named after the last Nizam of Hyderabad, Mir Osman Ali Khan. It is one of the oldest modern universities in India. It is the first Indian University to have Urdu and...
; full-time Visiting Faculty, Administrative Staff College of India and continues to be the Honorary Senior Fellow at Centre for Economic and Social Studies at Hyderabad.
Reddy was previously Deputy Governor of the RBI for 6 years and was succeeded by Dr. Rakesh Mohan.
Contributions
Reddy has worked on piloting a calibrated approach to financial sector reforms. A December 19, 2008 article in the New York Times has credited the tough lending standards he imposed on the Indian banks as RBI Governor for saving the entire Indian banking system from the sub-prime and liquidity crisis of 2008. At the Reserve Bank, he was Member-Secretary of two high level committees: one on Balance of paymentsBalance of payments
Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world.These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers...
and the other on Public Sector disinvestments. Dr. C. Rangarajan, former Governor, Reserve Bank of India headed both the committees. Reddy was also a member of the Reserve Bank of India's Policy Group on External Debt Statistics. Reddy is credited to have played a crucial role in framing macro-economic policies that helped quarantine the country from the domino effect
Domino effect
The domino effect is a chain reaction that occurs when a small change causes a similar change nearby, which then will cause another similar change, and so on in linear sequence. The term is best known as a mechanical effect, and is used as an analogy to a falling row of dominoes...
of the financial crisis encountered by the South-East Asian countries during the later part of the 1990s. He, along with Dr. C. Rangarajan, is also credited with the formulation of the course to be steered by the country to come out of the then Balance of Payments crisis.
As Governor, he saw his job as making sure Indian banks did not get too caught up in the bubble mentality. He banned the use of bank loans for the purchase of raw land, and sharply curtailed securitizations and derivatives, and essentially prohibited off-balance sheet financing. He increased risk weightings on commercial buildings and shopping mall construction and increased bank reserve requirements.
Less well-discussed is his work on rural banking, particularly on reviving co-operative banks and his focus on the common person. His term was marked by an emphasis on financial inclusion with the aid of information technology. He recently authored a book titled "India And The Global Financial Crisis : Managing Money and Finance" published by Orient Blackswan. He is widely consulted on many financial issues by institutions both in India as well as the world over.