Banking crisis: RBI Central Board reasserts itself after decades

The first RBI governor to revive the importance of the role of the Central Board of Directors was Raghuram Rajan

It was the first banking crisis after Independence in Exchange Bank case in 1951 when the role of the Central Board of Directors of the Reserve Bank of India (RBI) was clipped to give overriding powers to the governor. If the current governor, Urjit Patel, is surprised at the noises made by the Central Board 67 years later, there are reasons.

After the 1951 crisis, the government amended the RBI Act to make it clear that the governor, instead of the Central Board