IKHLAQ SIR.

 Reserve Bank of India [As per the RBI Act, the Central Board is made up of the following members (21): Governor,  four Deputy Governors, Four Directors (one each from the four regional boards of the RBI), 10  directors to be nominated by the Centre, and two government officials, also to be nominated by the Centre]. The relationship between the Board and the Governor is not comparable to a corporate set- up where the managing director (the corporate equivalent of the Governor) reports to the  board and draws his powers from it. While a managing director is an agent of the board in a  company, in the RBI, the Governor is not. He draws his powers from the RBI Act and not  from the Central Board. He is appointed by the Prime Minister in consultation with the  Finance Minister. The RBI Board has no say whatsoever in his appointment. In a company,  the board of directors chooses one of its own to be appointed as the managing director. In  the RBI,...

History of Indian Banking and Reforms. Modern banking in India began in the 18th Century, with the founding of the English Agency Houses in Calcutta and Bombay. Then in the first half of the 19th Century three presidency banks viz. Bank of Bengal (1806), Bank of Bombay (1840) and Bank of Madras (1843) were established. After the introduction of limited liability in 1860, private and foreign banks entered into the market. The beginning of 20th century saw the introduction of Joint stock banks. In 1921, the three presidency banks were merged to create Imperial Bank of India. Imperial Bank of India performed all the normal functions which a commercial bank was expected to perform. In the absence of any Central Bank in India till 1935, the Imperial Bank of India also performed a number of functions which are normally carried out by a Central Bank. At the time of Independence in 1947, the banking system in India was fairly well developed  with over 600 commercial banks operat...