Differences in banking systems.

Indian and European banking systems are broadly similar. American system differs from
these.
In India we have branch banking system a few big banks have a network of hundreds of
branches each. In America, they have unit banking. There are thousands of banks. Some
banks do have branches but they are relatively few of such banks. Most banks have
regional operations.
In India there is common law for all banks. In US, on top of Federal regulations, the
states have their own banking laws which often differ from one another.
In India we have a single controlling central bank, Reserve Bank of India. In America
they have 12 Federal Reserve Banks whose areas of responsibility are clearly demarcated
geographically. To direct, control and monitor 12 Fed Banks, they have one Federal
Reserve Board based in Washington DC. The Chairman of the Federal Reserve Board,
Ben Bernanke presently, has more power than the Governor of RBI.
In India, RBI is owned by the Union government, In US, Fed Banks are owned by
bankers. They elect few of their representatives on the Board in Washington as Directors.
In India, the RBI has limited freedom but it works closely with the Ministry of Finance.
In US Fed system is completely independent and not answerable to either the Secretary of
Treasury or even to the President.
In India, RBI is Lender of the Last Resort. Banks go to RBI rarely for borrowing. In
US, Banks regularly and frequently borrow from the Fed. Fed is the major operator in
Money Market.
Bank Rate, the rate at which the RBI lends to Banks is moved rarely and that too as an
extreme weapon. In US, Fed Board review Fed Fund Rate every six weeks in the Fed
Open Market Committee (FOMC) and is often moved. Fed conducts it purchase and sale
of treasury bills to achieve a targeted Fed Fund Rate.
With US Dollar as the global reserve currency, Fed keeps the accounts of reserves for all
the countries.
Expansion or contraction monetary policies of Fed have greater impact on global money
then the similar policies of RBI which impact only Indias money supply.