History of Banking in INDIA

 

  • 1806 – Formation Bank of Bengal
  • 1840 – Formation of Bank of Bombay
  • 1843 – Formation of Bank of Madras
  • (NOTE: – Above banks were established by British Government near port cities for easy trading with US and UK)
  • All 3 banks merged in 1921 as Imperial Bank of India
  • 1894 – Punjab National Bank (Founder- Lala Lajpat Rai ; First pure Indian Bank)
  • Reserve Bank of India (RBI) – 1935

RBI Formation

  • 1934 – Formation of “Hilton Young commission”
  • 1935 – RBI came into existence (First Governor – Sir Osborne Smith)
  • 1949 – Nationalization of RBI (First Indian Governor – C D Deshmukh)
  • 1955 – SBI (1955 Act; Imperial bank of India converted into SBI)
  • 1969 – 14 Banks (Nationalization of Domestic Banks with deposits over 50+ Crores )
  • 1980 – 6 Banks (Nationalization of 6 Banks with deposits over 200+ Crores)
  • Total Banks = 14+6 = 20
  • In 1993, New Bank of India merged with Punjab National Bank (PNB) (20-1 = 19)
  • Total 19 nationalized banks are currently in operation in India.
  • All nationalized banks come under the PSB (Public Sector Banks- Having 51% or more government share) but all PSB’s are not nationalized. Ex- Bhartiya Mahila Bank (Est.-2013)
History of Banking in INDIA
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