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| Banking Awareness - History of Banking in India |
Banking Awareness - History of Banking in India
Hello Readers, Today at LOUD STUDY, we will deal with the topic History of Banking in India.
History of Banking in India is an important topic asked under Banking Awareness in various government and private sector competitive exams.
First bank in India was Bank of Hindustan which was established in 1770 at Calcutta ( now known as Kolkata ) under European Management but liquidated in 1829-1832
In 1786, General Bank of India was established but failed in 1791 i.e after five years of establishment
Later by Presidency Government in British India Three Banks were established also called as Presidency Banks
First among them was Bank of Calcutta which was established on 2nd June 1806, but later in 1809, name was changed to Bank of Bengal
Other two among them are Bank of Bombay which was established on 15th April 1840 and Bank of Madras which was established on 1st July 1843
In 1865, Allahabad Bank was setup which is also known as India’s Oldest Joint Stock Bank which is still functioning and also known as India’s Oldest Public Sector Bank
In 1881, Oudh Commercial Bank was established in Faizabad as the first bank with Limited Liability ( i.e if bank fails then only bank’s property can be sold for recovery of public money, not their owners property ) but failed in 1958 also known as Awadh Commercial Bank
In 1894, Punjab National Bank was established in Lahore which became the first bank purely managed by Indians
In 1906, Bank of India was established in Bombay ( now known as Mumbai ) became the first Indian Bank to open a branch outside India in London in 1946
In 1911, Central Bank of India was established which became the first bank to be fully owned and managed by Indians and thus it’s also known as India’s first truly Swadeshi Bank
In 1920, Hilton Young Commission was setup to keep an eye on Private Banks
In 1921 all three Presidency Banks were merged and named as Imperial Bank of India
In 1926, Royal Commission on Indian Currency and Finance also known as Hilton Young Commission came up with an idea of setting up a Central Bank “RBI” to track Private Banks and their functioning
On 1st April 1935, Reserve Bank of India was established following the norms of RBI Act,1934 at Calcutta ( now known as Kolkata ), but was moved to Bombay ( now known as Mumbai ) in 1937
Till 1948, RBI was owned by Private Shareholder with an initial startup capital of 5 crore but on 1st January 1949 RBI was nationalized ( owned by Government of India )
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On 1st July 1955, Imperial Bank of India was nationalized and given the name as ” State Bank of India ( SBI ) under SBI Act 1955 on the recommendation of A.D.Gorewala Committee
Later in 1959, 8 Banks were attached with SBI and thus known as associates of SBI :
- State Bank of Bikaner
- State Bank of Jaipur
- State Bank of Saurastra
- State Bank of Indore
- State Bank of Hyderabad
- State Bank of Patiala
- State Bank of Mysore
- State Bank of Travancore
In 1963, State Bank of Bikaner and State Bank of Jaipur were merged and named as State Bank of Bikaner & Jaipur
In 2008, State Bank of Saurastra was merged with SBI and In 2010, State Bank of Indore was merged to SBI
On 1st April 2017, State Bank of Hyderabad, State Bank of Patiala, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner & Jaipur were merged to SBI in addition to Bharitya Mahila Bank which was established in 2013
Nationalization of Banks in India was done in Two Phase :
First Phase : 19 July 1969, 14 Banks with minimum capital of 50 crore
Second Phase : 15 April 1980, 06 Banks with minimum capital of 200 crore
Total 20 Banks were nationalized but on 4th September 1993, New Bank of India which was among the nationalized bank was merged to Punjab National Bank and thus at present in India there are 19 nationalized banks
At last, A special thanks to choose LOUD STUDY.
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