Fragile by Design (Amazon) by Calomiris and Haber explains how the banking system of every country is the result of a unique set of starting conditions and how politics and culture shape their overall stability and purpose. They call it the Game of Bank Bargains.
My personal take-away from this is India is screwed. We will never get rid of our public banks who will conspire with our politicians to bleed our country dry. Politicians will find our banks ready and willing to impose an inflation tax on us. Who could blame them when hardly 2% of our population pays an income tax? We seem to have borrowed from the worst elements of US, Mexican and Brazilian banking systems. No Hope.
Read the book!