He was the first Indian to be appointed as the Governor of the Reserve Bank of India on August 11, 1943 and he continued in this capacity till June 30, 1949. He played a pivotal role in the creation of Industrial Finance Corporation and promotion of rural credit.
During his tenure, RBI saw enactment of the Banking Companies Act, 1949 which laid the foundation for regulation of banking sector in India. The nationalisation of RBI on January 1, 1949 also took place during his tenure. 4. After his tenure in the RBI, Shri Deshmukh went on to become Member, Planning Commission when it was set up in 1950.