Popular claims about Indian money, tested against the record. The paper prints the verdict whichever way it falls.
Contradicted
“Britain's December 1950 plan wrote down India's blocked balances by £240 million.”
Claim as found: a misreading that appears in some secondary accounts
Contradicted. The December 1950 plan contemplated a release, a drawing-down, of "some £240 million from the blocked balances of the three countries", of which India's part was £211m, "up to £35 million annually for six years beginning in July 1951". It was a schedule of releases against the balances, not a cancellation of them, and Churchill's earlier counterclaim was not…
Strength of evidence: strong
Partly supported
“Home Charges were a net transfer from India to Britain with no equivalent return.”
Claim as found: Drain theory; Naoroji, Dutt, Ranade, Gokhale
The transfer is documented and large: net disbursements in England of £3.66m (1850-51) rising to about £14.7m in the late 1870s and £16-18m in the 1890s (Fowler App. II Statement 9, table in this file; Statistical Abstract 39th no. table 71). The official components show that a large part was not tribute but payment for things: interest on debt raised in London for Indian railways and irrigation;…
Strength of evidence: strong
Supported
“India had no central bank before 1935.”
Claim as found: Standard textbook statement
The Reserve Bank of India was constituted under the Reserve Bank of India Act 1934 and opened on 1 April 1935 with Sir Osborne Smith as Governor. Before that date the Imperial Bank of India (from 27 January 1921) performed a number of functions normally carried out by a central bank, but it was a commercial bank 80 per cent privately owned; before 1921 the three Presidency Banks performed parts of…
Strength of evidence: strong