Development of Banking in India
Bank,bank development, bank development in India, banking development,banking,banking system,
First
Stage (Primary Stage)
- The first bank of India was established in 1770 in Calcutta (present Kolkata) in the name of Bank one of Hindustan Is
- This bank, based entirely on the European banking system, was founded by Alexander & Co., which was soon closed
Second
Stage (From 1806 - 1860)
1.
Keeping in mind the interests of East India Company, three Presidency Banks
were established in India by private mutual shareholders. 1806 AD Bank of
Bengal, 1840 AD Bank of Bombay and in 1843 AD. Bank of Madras was established
in These three banks were under the control of the government and till 1862
they also had the right to issue notes.
2.
The three Presidency banks failed due to working primarily for the East India
Company. In 1921, the three banks were merged and the Imperial Bank of India
was established.
Third
Stage (From 1860 - 1913)
1.
Allahabad Bank was established in 1865, Alliance Bank of Shimla and Awadh
Commercial Bank in 1881, Punjab National Bank in 1894 and People's Bank of
India in 1901.
2.
The Awadh Commercial Bank, established in 1881 on the basis of limited
liability, was the first bank operated by Indians.
3.
Punjab National Bank was the first bank established and operated by fully
Indian. Which was established in 1894.
4.
Bank of India in 1906, Bank of Baroda in 1908, Central Bank of India in 1911
and Bank of Mysore in 1913.
(Fourth Stage) (from 1913 - 1939) .
1.
After the end of the First World War 'the development of banking in India
accelerated. In 1921, the Imperial Bank of India was merged to merge the three
Presidency Banks.
2.
The formation of the Central Banking Inquiry Committee in 1930 suggested in its
report that the establishment of a central bank and the Comprehensive Banking
Act should be emphasized to establish a strong, well organized and unorganized
banking system.
3.
Based on the suggestions of this committee, the Reserve Bank of India Act was
passed in 1934. As a result, the Reserve Bank of India (RBI) started
functioning from 1 April 1935.
Fifth
stage (from 1939 to 1946)
1.
This period is called the period of banking expansion. The quantity of demand
deposits of all banks increased. With the establishment of new banks, new
branches were also opened by old banks.
2.
United Commercial Bank and Hindustan Commercial Bank (1943 AD) were established
in this phase.
Six phase (Six years)
1.1 January 1949 A.D. Was nationalized by the Reserve Bank of India. March 1949 AD In the
Indian Banking Act was passed, under this Act, the Reserve Bank of India was
given wide powers to inspect.
2.
1 july 1955 A.D. The Imperial Bank of India was nationalized and renamed State
Bank of India (SBI).
3.
On July 19, 1969 and April 15, 1980, 14 and 6 large commercial banks were
nationalized respectively.
4.
1975 AD Started the process of establishing a Regional Rural Development Bank.
Due to which the rural area has a greater amount of financial resources. To be
provided.
Seventh
Stage
1.
1991 AD After the implementation of the new economic policy in the year
1993-99, the private sector was allowed to open banks again. Along with this,
foreign banks should also expand in India. Permission to open new branches was
granted.
