Independence of regulators and independence of the central bank

I have a column href="http://www.mayin.org/ajayshah/MEDIA/2010/autonomy.html">When
should a government agency have autonomy?, in the Financial
Express today. This is a hot subject in India today, in the
aftermath of the ULIPs ordinance. While on this
subject, also see:

• href="http://www.livemint.com/2010/06/30202552/The-taming-of-a-regulator.html">An
  editorial in Mint.
  
• href="http://www.livemint.com/2010/07/12211501/Should-Finmin-be-the-super-reg.html?atype=tp">Tamal
  Bandyopadhyay in Mint.
  
• href="http://www.hindustantimes.com/Regulators-need-autonomy-but-also-accountability/Article1-574352.aspx">Gautam
  Chikermane in the Hindustan Times.
  
• href="http://www.financialexpress.com/printer/news/649420/">Jayanth
  Varma in the Financial Express.
  
• href="http://economictimes.indiatimes.com/articleshow/6198930.cms?prtpage=1">K. P. Krishnan
  in the Economic Times.
  
• href="http://www.livemint.com/2010/07/20202034/Recall-the-Ulip-product-Compe.html?h=D">Monika
  Halan in Mint.
  
• href="http://www.livemint.com/articles/2010/04/13212045/Difficult-to-sell-Ulip-turns.html">Monika
  Halan in Mint
  
• href="http://www.livemint.com/2010/01/05224037/The-need-to-inculcate-a-8216.html">Monika
  Halan in Mint
  

One feature of the ULIPs crisis which has not been widely
appreciated is the role of the banks. While much opprobrium has been
directed at insurance companies and insurance agents (both
individuals or specialised financial distribution companies), banks
are big players in selling insurance products. Their misconduct in
selling represents a failure of RBI supervision. Most major banks are
part of this scandal. The few customers who have protested have been
sorted out, with a no-media clause in the resolution agreement that
prevents the story from getting out.