Raghunatha Rao was born in a prominent Marathi Deshastha Brahmin family in February 1831 in Kumbakonam.

Two years later, the Holkar requested Rao to serve the state as Special Settlement Officer.

Raghunatha Rao's administration is regarded as one of progress and the Diwan is recorded as selecting the most qualified men for judicial positions in the state.

Raghunatha Rao was one of the founders of the Madras Mahajana Sabha and the Indian National Congress.

The Indian National Social Conference, the first of its kind, was inaugurated at Raghunatha Rao's house in Madras in December 1887.