Development of Banking in India

Development of Banking in India

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First Stage  (Primary Stage) (up to 1806)

  1.  The first bank of India was established in 1770 in Calcutta (present Kolkata) in the name of Bank one of Hindustan Is  
  2.  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.

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