An attempt would be made to highlight what may be termed as tentative issues and lessons emerging from the Indian experience. By way of a summing up, some random thoughts are set out to provoke analysis and debate on the subject. Historical context India had a fairly well developed commercial banking system in existence at the time of independence in 1947.
The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity.