Azad Hind Bank: History, Establishment by Subhash Chandra Bose

Did You Know? Netaji Subhash Chandra Bose had established a bank before the independence of India in 1947.

Azad Hind Bank was established on 5 April 1944, at Rangoon, the then headquarters of the Provisional Azad Hind Indian government supported by Imperial Japan.

On 21 October 1943 Subhash Chandra Bose formed provisional government of Azad Hind and early after it Bose declared war against British Raj and its allies on 23 October 1943.

But Why this Bank Established?

Azad Hind Bank was estabished by Netaji Subhash Chandra Bose to manage funds donated by the Indian community from across the world for the liberation of India from the British Raj, while utilizing the bank’s services for the operations of the Azad Hind Fauj.

The bank maintained its branches throughout Japan occupied countries. The currency notes were issued in the form of Promissory note, and these notes were usually printed on one side. The money collected by the Azad Hind government was kept in the Bank. Initially the bank had an authorized capital of ₹ 5 million and paid-up capital of ₹ 2.5 million.

What Happened to Bank? Is it in existence now?

The bank’s life was short. It closed by the end of World War II or precisely after the INA’s retreat and the fall of Rangoon.

But decades later, it resurfaced in an unexpected way. Following the Modi government’s decision in 2016 to declassify files related to Bose, the finance ministry began receiving unusual petitions. Several borrowers wrote offering to repay their loans using Azad Hind Bank currency notes, some promising the bearer sums as high as ₹1 lakh.

The Reserve Bank of India (RBI), citing Section 22 of the RBI Act, 1934, rejected the requests. It said that it had no record of such an entity and that only the RBI has the sole authority to issue banknotes. Some petitioners pushed back, arguing the RBI “itself was formed by the British” and that the government should take a fresh call.