L.K. Jha: 8th Governor of the Reserve Bank of India

Every rupee note today carries the RBI Governor’s signature in both English and Hindi. That convention began with one man, in 1969, on a set of notes marking Gandhi’s birth centenary. L.K. Jha was that Governor.

• A Life in Dates
• The Governor Years
• The Gandhi Centenary Notes
• Education and Later Roles
• Ambassador During War
• One Man, Many Roles
• Exam Edge

A Life in Dates

Good to Know

L.K. Jha was born on 22 November 1913, in Darbhanga, Bihar. He joined the Indian Civil Service in 1936. In 1946, he was appointed an MBE, for his service as a Deputy Secretary during British rule.

From 1964 to 1966, he served as Principal Secretary to the Prime Minister. He held this role under Lal Bahadur Shastri, then Indira Gandhi.

From Delhi to Srinagar

He became the 8th Governor of the Reserve Bank of India on 1 July 1967. He stepped down on 3 May 1970. He later served as Governor of Jammu and Kashmir, from 1973 to 1981. He died on 16 January 1988, in Pune.

The Governor Years

Must Know

L.K. Jha was the eighth Governor of the Reserve Bank of India. He served from 1 July 1967 to 3 May 1970.

He was a member of the elite Indian Civil Service. Before RBI, he served as Principal Secretary to the Prime Minister, from 1964 to 1966.

A Consequential Tenure

His tenure also saw the nationalisation of 14 major commercial banks, in 1969. This was one of the decade’s most consequential banking-policy events.

The Gandhi Centenary Notes

Must Know

During his tenure, RBI issued the Gandhi birth-centenary currency notes. They came in ₹2, 5, 10, and 100 denominations, on 2 October 1969.

Those notes carried his signature in Hindi as well as English. This was the first time an RBI Governor’s signature appeared in Hindi on Indian currency.

A Convention That Stuck

The Hindi-signature convention Jha began in 1969 is still followed on Indian currency today. Every rupee note now carries the Governor’s signature in both languages.

Education and Later Roles

Good to Know

He studied at Benaras Hindu University, then at Trinity College, Cambridge. There, he studied economics under John Maynard Keynes. He later studied at the London School of Economics too, under Harold Laski.

As RBI Governor, he introduced the Lead Bank Scheme. He also established the National Credit Council. He extended deposit insurance to cooperative banks. He put gold controls on a statutory footing.

Ambassador During War

Great to Know

After stepping down as RBI Governor, he took a new post. He served as India’s Ambassador to the United States, from 1970 to 1973. During that posting, he served through the India-Pakistan war. He also served through Bangladesh’s liberation.

Henry Kissinger later praised his persuasive diplomatic skill. He did so in his own memoir, White House Years. Jha’s US posting overlapped with one of the most consequential periods in modern South Asian history.

A Writer Too

He authored two books. One was “Mr. Red Tape.” The other was “Economic Strategy for the 80s: Priorities for the Seventh Plan.” Both drew on his decades inside Indian economic work.

One Man, Many Roles

Great to Know

In the late 1970s, he served as Deputy Chairman of the Brandt Commission. This was an international body examining global North-South development issues.

From 1981, he chaired the Economic Administration Reforms Commission. He also advised Prime Ministers Indira Gandhi and, later, Rajiv Gandhi on economic matters. He later became a nominated Rajya Sabha member from Bihar. He held that seat from 1986 until his death.

Quick Q&A

Exam Edge