 Deshmukh returned to India in 1920 and worked in the Central Provinces and Berar where he went on to hold several posts including as undersecretary to the government, Deputy Commissioner and Settlement Officer and as secretary to the Secretary-General at the Second Round Table Conference of 1931, later becoming secretary to the finance and public works department.He also served briefly as Joint Secretary to Government of India in the departments of education and health and was Custodian of Enemy Property.Deshmukh joined the Reserve Bank of India in 1939 and served successively as its Secretary to the Board, Deputy Governor and the Governor.