Y. Venugopal Reddy
|Dr. Yaga Venugopal Reddy|
|21st Governor of Reserve Bank of India|
6 September 2003 – 5 September 2008
|Preceded by||Bimal Jalan|
|Succeeded by||Duvvuri Subbarao|
17 August 1941 |
Dr. Yaga Venugopal Reddy(యగ వేణుగోపాల్ రెడ్డి), better known as Y. V. Reddy, (born 17 August 1941) 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.
Education and honours
Reddy received his M.A. in economics from Madras University, India. He holds a PhD from Osmania University, Hyderabad. He also holds a Diploma in Economic Planning from the Institute of Social Studies, Netherlands.
On 17 July 2008 Reddy was made an Honorary Fellow of the London School of Economics.
Venugopal Reddy was appointed the twenty-first Governor of the Reserve Bank of India on 6 September 2003 and served in that position for five years.
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, 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.
He is the Chairman of the 14th Finance Commission of India.
Reddy has worked on piloting a calibrated approach to financial sector reforms. A 19 December 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 payments 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 securitisations 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.
In December 2003, Dr Reddy was dragged into controversy, when a person impersonating him made a hoax call to the then Regional Director of RBI Bhopal, Smt Uma Subramaniam asked her to contribute INR 2 million for Reddy's personal use. Subramaniam collected the money by coercing her staff members and unwittingly handed over the money to Dr Reddy, who was later found to be an impostor. The sensational fraud rocked RBI and embarrassed Dr Reddy. 
- "This Year's Padma Awards announced" (Press release). Ministry of Home Affairs. 25 January 2010. Retrieved 25 January 2010.
- "How India Avoided a Crisis – Joe Nocera". New York Times. 20 December 2008. Retrieved 20 December 2008.
- " Y.V. Reddy appointed RBI Governor for five-year term" The Hindu Business Line, 19 July 2003
- "Don't write off the US economy yet" The Hindu, 18 August 2011
- "Reddy and Subbarao manipulated Rupee".
- "Rupee Bulls hear message from Reddy".
- "Opaque RBI rewards charge-sheeted official".