Y. V. Reddy

Reddy's presidential address on "A Tale of Two Commissions and Missing Links" at the 97th Annual Conference of the Indian Economic Association (IEA) in Udaipur on 27 December 2014, dwelt at length on the origin, evolution, linkages, achievements, limitations and the debates relating to the two major commissions on economic affairs in India. He also cited the success of the Chinese model where the concept of 'plan' had been replaced by 'guideline' in the country's 11th Five Year programme. He noted "The change led to China's transition from a Soviet-style planned economy to a socialist market economy and gained greater responsibility and power in overseeing China's economic development".

Timothy Geithner, former US Secretary of the Treasury and president of Federal Reserve Bank of New York, in his book Stress Test: Reflections on Financial Crises, published in May 2014, wrote about his brief encounter with India's former Central Bank Governor Y.V. Reddy who gave him a copy of "Complications: Notes from the Life of a Young Surgeon" by Atul Gawande. [Reddy] told me it was the best book I would ever read about central banking, and the parallels with financial crisis management really are striking. It's about making life-or-death decisions in a fog of uncertainty, dealing with the constant risk of catastrophic failure.

He was the chairman of the Fourteenth Finance Commission of India since 3 January 2013.

Reddy was invited to deliver the prestigious The Per Jacobsson Foundation Lecture in June 2012 at the Bank for International Settlements in Switzerland. In this lecture on 'Society, Economic Policies and the Financial Sector', the main message he gave was that society has put its trust in central banks and as such it expects central bank to ensure trust and confidence in money and finance and serve the interest of the masses.

Reddy was president of the Indian Econometric Society during 2011. Reddy was on the advisory board of Institute for New Economic Thinking (INET). The INET advisory board includes Nobel laureates as well as other prominent economists.

In 2010, he was awarded India's second highest civilian honour, the Padma Vibhushan.

Navigating through the debates between 2010 and 2012 on the continuing global financial crisis, his 2013 book "Economic Policies and India's Reform Agenda: New Thinking" reflected the confidence of Reddy who steered the nation's banks to safer waters. "Advice & Dissent" published in 2017 is Reddy's memoir.

Reddy authored a book titled "India and The Global Financial Crisis : Managing Money and Finance" in 2009. This book provides insights into the making of public policies across a spectrum of areas between the years 2003 and 2008, a period of rapid growth of the Indian economy. He came out with a sequel "Global Crisis, Recession and Uneven Recovery" which provided a thinker and experienced policymaker's understanding of the genesis, anatomy and impact of the financial crisis, and of the lessons it offered.

Reddy was awarded the degrees of 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, he was made an Honorary Fellow of the London School of Economics.

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 Indian banking system from the sub-prime and liquidity crisis of 2008.

In the Indian context, he was the first to use the term 'financial inclusion' in April 2005 in his Annual Policy Statement as Governor of the Reserve Bank of India. Banks were urged in the Annual Policy Statement to review their existing practices to align them with the objective of financial inclusion.

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.

23 speeches given by Reddy during his term as RBI governor (2003 to 2008) are in the public domain. Other speeches are also in the public domain, for example:

In December 2003, Reddy was dragged into a controversy, when someone impersonating him called the then regional director of RBI Bhopal, Uma Subramaniam and asked her to lend ₹20 lakh (equivalent to ₹62 lakh or US$78,000 in 2020) for a personal emergency. Subramaniam was able to collect only INR 9,00,000 by various means which included coercing her staff members. She then handed over the money to an accomplice of the impostor. She did not get back to Reddy regarding this incident. The sensational fraud rocked and embarrassed the RBI, and infuriated Reddy, who insisted on a full inquiry.

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 Indian Administrative Services (IAS), he worked as a lecturer from 1961.

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.

Yaga Venugopal Reddy (born 17 August 1941) is an Indian economist and a retired Indian Administrative Service (IAS) officer of the 1964 batch belonging to Andhra Pradesh cadre. Reddy served as governor of the Reserve Bank of India (RBI), India's central bank, from September 2003 until September 2008.

Yaga Venugopal Reddy was born on 17 August 1941 in a Telugu family in Patur village, Kadapa district of present-day Andhra Pradesh, India.