Shivam at 23:23, 7 April 2026

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{{Short description|Indian banker (1927–2021)}}
{{family name hatnote|Maidavolu|Vijayan|Indian name|lang=Toponymic}}
{{Use Indian English|date=July 2015}}
{{Use dmy dates|date=April 2021}}
{{Infobox officeholder
| name = M. Narasimham
| order = 13th
| term_start = 2 May 1977
| term_end = 30 November 1977
| predecessor = [[K. R. Puri]]
| successor = [[I. G. Patel]]
| birth_name = Maidavolu Narasimham
| birth_date = {{Birth date text|3 June 1927}}
| birth_place = [[Nellore]], [[Madras Presidency]], [[British India]] (present-day [[Andhra Pradesh]], [[India]])<ref name="Money Life">{{cite web | url=https://www.moneylife.in/article/m-narasimham-father-of-indian-banking-reforms-is-no-more/63600.html | title=M Narasimham, Father of Indian Banking Reforms, Is No More | publisher=Money Life | work=Dr B Yerram Raju | date=21 April 2021 | accessdate=22 April 2021}}</ref>
| death_date = {{Death date and age|20 April 2021|3 June 1927}}
| death_place = [[Hyderabad]], [[Telangana]], India
| death_cause = [[COVID-19]] complications
| children = 1
| spouse =
| office = Governor of Reserve Bank of India
| image = M. Narasimham.webp
}}

'''Maidavolu Narasimham''' (3 June 1927{{spnd}}20 April 2021) was an Indian banker who served as the thirteenth [[List of governors of the Reserve Bank of India|Governor of the Reserve Bank of India]] (RBI) from 2 May 1977 to 30 November 1977.<ref name="RBI">{{cite web
|url=http://www.rbi.org.in/scripts/governors.aspx#narasim
|title=M Narasimham
|access-date=15 September 2008
|publisher=Reserve Bank of India
|url-status=dead
|archive-url=https://web.archive.org/web/20080916083919/http://www.rbi.org.in/scripts/governors.aspx
|archive-date=16 September 2008 }}</ref> For his contributions to the banking and financial sector in India, he is often referred to as the father of banking reforms in India.<ref name=":3">{{Cite web|date=21 April 2021|title=M Narasimham, who passed away Tuesday, was father of banking reforms|url=https://indianexpress.com/article/business/m-narasimham-who-passed-away-tuesday-was-father-of-banking-reforms-7282730/|access-date=21 April 2021|website=The Indian Express|language=en}}</ref><ref name=":4">{{Cite web|title=M Narasimham Was The Doyen Of Banking Reforms In India|url=https://www.moneycontrol.com/news/opinion/m-narasimham-was-the-doyen-of-banking-reforms-in-india-6796551.html|access-date=21 April 2021|website=Moneycontrol|date=21 April 2021 }}</ref> Some of the reforms attributed to his recommendations include changes to banking structures, introduction of private sector banks, creation of asset recovery funds, rural banking, changes to capital adequacy and provisioning standards, technology upgradation and modernization of [[Public sector banks in India|public sector banks]], and capital market linked banking reforms.

Narasimham also served as India's executive director at the [[World Bank]] and later at the [[International Monetary Fund]] and the [[Asian Development Bank]].<ref name=":4" /> He served as the secretary in the [[Ministry of Finance (India)|Ministry of Finance]], and as the additional secretary of the Department of Economic Affairs as well. He was awarded India's second highest civilian honor, the [[Padma Vibhushan]], in 2000.

== Early life ==
Narasimham was born on 3 June 1927 in Nellore<ref name="Money Life" /> to Padmavati and Maidavolu Seshachelapati.<ref name=":0">{{Cite book|title=The International Who's Who, 1990–91|date=1990|isbn=0-946653-58-5|edition=54th|location=London|oclc=22284891|page=[[iarchive:internationalwho0054unse/page/1145/mode/1up|1145]]|publisher=[[Routledge|Europa Publications]]}}</ref> The family hailed from Maidavolu village in [[Guntur district]] of present-day Andhra Pradesh. He completed his education from [[Presidency College, Chennai|Presidency College]], in Madras and went on to study at the [[St John's College, Cambridge]].<ref name=":0" /> He was a budding cricketer and could have been on St. John's College's team with [[Test cricket|Test]]-level players, but he was ineligible because of his [[near-sightedness]]<ref name=":4" />

== Career ==
Narasimham joined the [[Reserve Bank of India]] (RBI), India's central bank in 1950 in Bombay (present day Mumbai).<ref name=":0" /> He joined the bank as a research officer in its Economic Department.<ref name="RBI" /> He later joined the government and served as additional secretary of the Department of Economic Affairs.<ref name="RBI" /><ref name=":2">{{Cite web|title=M Narasimham, father of banking reforms, dead|url=https://www.thehindubusinessline.com/money-and-banking/m-narasimham-father-of-banking-reforms-dead/article34368996.ece|access-date=21 April 2021|website=@businessline|date=20 April 2021 |language=en}}</ref> He was the first and only Reserve Bank cadre officer to be appointed as governor of the central bank.<ref name=":3" /> He served as the thirteenth [[List of governors of the Reserve Bank of India|Governor of the Reserve Bank of India]] from 2 May 1977 to 30 November 1977.<ref name="RBI" />

After his term as the RBI governor, he served as India's executive director at the [[World Bank]] and later at the [[International Monetary Fund]]. He was also the Vice President of the [[Asian Development Bank]].<ref name=":4" /> Narasimham also served as secretary in the Ministry of Finance between 1982 and 1983.<ref name=":2" /><ref name=":1">{{Cite news|last=Saha|first=Anup Roy & Manojit|date=20 April 2021|title='Father of banking reforms': Ex-RBI governor M Narasimham passes away at 94|work=Business Standard India|url=https://www.business-standard.com/article/finance/father-of-banking-reforms-narasimham-passes-away-at-94-121042001279_1.html|access-date=20 April 2021}}</ref> He was awarded India's second highest civilian honor [[Padma Vibhushan]] in 2000.<ref>{{Cite news|last=Team|first=BS Web|date=20 April 2021|title=Former Reserve Bank governor Maidavolu Narasimham passes away at 94|work=Business Standard India|url=https://www.business-standard.com/article/current-affairs/former-reserve-bank-governor-maidavolu-narasimham-passes-away-at-94-121042001004_1.html|access-date=21 April 2021}}</ref>

=== Banking reforms ===
Narasimham was the chair of two high-powered committees on banking and financial sector reforms viz Committee on the Financial System (1991) and the Committee of Banking Sector Reforms (1998).<ref name=":2"/> The reforms and recommendations from these committees have become mainstays in the Indian banking and financial sector leading to Narasimham being referred to as the father of banking reforms in India.<ref name=":1" />

==== Bank structures and mergers ====
Bank mergers toward creation of strong public sector mega-banks were first recommended by the Narasimham committee of 1991. India's recent merger of ten public sector banks in 2020 was building on recommendations from this committee.<ref name=":1" /><ref>{{Cite web|date=31 March 2020|title=Merger of 10 public sector banks to come into effect from today: 10 points|url=https://www.livemint.com/industry/banking/merger-of-10-public-sector-banks-to-come-into-effect-from-today-10-points-11585632469446.html|access-date=21 April 2021|website=mint|language=en}}</ref>

==== Asset reconstruction ====
Some of the recommendations around creation of [[Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002|Asset Reconstruction Companies]] as means to securitize bad debt are built on the recommendations from his committee.<ref name=":1" /> His committee also introduced the notion of an asset reconstruction fund to take over bad loans. As a follow-up, six special debt recovery tribunals were set up. This served as the foundation for India's current [[Insolvency and Bankruptcy Code, 2016|Insolvency and Bankruptcy Code]] which was codified in 2016.<ref name=":1" />

==== Rural banking ====
Earlier in 1976, he had also been the author of the Regional Rural Bank report which was the basis for the setup of regional rural banks in India, building on his blueprint and recommendations of having these banks maintain a local appeal while bringing the professionalism from large commercial banks.<ref name=":1" />

==== Capital adequacy ====
The first committee report of 1991 introduced the notion of a capital adequacy ratio while proposing a phased reduction in mandatory bond investment and cash reserve ratios in an attempt to encourage lending. The committee also introduced rules around non-performing assets (NPA) classification and also had the [[Reserve Bank of India]] (RBI) requiring banks make provisions for bad loans.<ref name=":1" />

==== Private banks and modernization of public sector banks ====
Some of the other recommendations from Narasimham included creation of new generation private sector banks including [[ICICI Bank]], [[HDFC Bank]], and [[Kotak Mahindra Bank]]. His recommendations also had banks raising money from the capital markets. Interest rates were also de-regulated fostering competition between banks.<ref name=":1" /> Amongst the other [[Public sector banks in India|Public sector banks]] (PSB), the committee recommended that the government separate ownership from management and also led to technology upgradation and modernization.<ref name=":1" />

== Published works ==

* {{Cite book|last=Narasimham|first=M.|url=https://books.google.com/books?id=nOQtAAAAMAAJ&q=m+narasimham|title=India and the Current Crisis in the International Economy|date=1985|publisher=IMC Economic Research and Training Foundation|language=en}}
*{{Cite book|last=Narasimham|first=M.|url=https://books.google.com/books?id=mwp5_2j0_VUC&q=m+narasimham|title=World Economic Environment and Prospects for India|date=1988|publisher=Sterling Publishers|isbn=978-81-207-0769-6|language=en}}
* {{Cite book|last1=System|first1=India Committee on the Financial|url=https://books.google.com/books?id=vVUXAQAAMAAJ&q=m+narasimham|title=The Financial System, Report|last2=Narasimham|first2=M.|date=1992|publisher=Nabhi Publications|isbn=978-81-7274-027-6|language=en}}
*{{Cite book|last=Narasimham|first=M.|url=https://books.google.com/books?id=aqRbknpvR7cC|title=Economic Reforms: Development and Finance|date=2002|publisher=U B S P D|isbn=978-81-7476-381-5|language=en}}
*{{Cite book|last=Narasimham|first=M.|url=https://books.google.com/books?id=sFgmal-VbWYC|title=From Reserve Bank to Finance Ministry and Beyond: Some Reminiscences|date=2002|publisher=UBS Publishers' Distributors|isbn=978-81-7476-397-6|language=en}}<ref name=":4" />

== Death ==
Narasimham died on 20 April 2021 in Hyderabad from [[COVID-19]] complications. He was aged 94.<ref name=":1" />

==References ==
{{Reflist}}

== External links ==

* [https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CR212_1991D7922889FE4042C4BFE3F52A9D293F23.PDF Report of the Committee on the Financial System (1991)]
* [https://sidbi.in/files/publicationreport/narsimham-commmittee.pdf Action Taken Report -- Committee on Banking Sector Reforms (1998)]
{{Governors of Reserve Bank of India}}
{{Padma Vibhushan Awards}}
{{Authority control}}

{{DEFAULTSORT:Narasimham, M}}
[[Category:Governors of the Reserve Bank of India]]
[[Category:Indian bankers]]
[[Category:Indian civil servants]]
[[Category:Recipients of the Padma Vibhushan in trade & industry]]
[[Category:2021 deaths]]
[[Category:1927 births]]
[[Category:People from Guntur district]]
[[Category:Businesspeople from Andhra Pradesh]]
[[Category:Deaths from the COVID-19 pandemic in India]]
[[Category:Alumni of St John's College, Cambridge]]

M. Narasimham - Revision history

Shivam at 23:23, 7 April 2026