In the year 2001, RBI constituted the 'Advisory Group on Corporate Governance' (chaired by R.H. Patil). This group compared frameworks for corporate governance practices in India with international best practices and put forth recommendations that encompass all aspects of corporate governance.
The recommendations included directors' responsibilities, shareholders' accountability, criteria for selection of independent directors, the Board structure and composition, the constitution of committees, role of stakeholders and relevant disclosures. Subsequently, RBI established the 'Consultative Group of Directors of Banks and Financial Institutions'; chaired by Shri A.S. Ganguly (commonly known as the Ganguly Committee) for reviewing the role of boards as supervisors.