Indian Banking System

                                                     Indian Banking System

In 1770, Bank of Hindustan was established by Alexander and Company in Calcutta. It was the first bank to be established in India.

In 1881, Avadh Commercial Bank was established. It was the first bank to have limited liability by Indians.

Punjab National Bank was established in 1894. The first bank operated entirely by Indians.

Three Presidency Banks were established in India.

1) Bank of Bengal (1806)

2) Bank of Bombay (1840)

3) Bank of Madras (1843)

Imperial Bank was formed in 1921 together with all the three Presidency Banks.

State Bank of India:

In 1951, the All India Rural Credit Survey Committee was established under the chairmanship of Dr. A. D. Gorwala. Under this, Imperial Bank should be converted into State Bank of India. Accordingly, Imperial Bank was converted into State Bank of India in July 1955.

Reserve Bank of India:

According to the Hilton Young Committee recommendation, Reserve Bank of India was established in 1935. At the time of the establishment, the Reserve Bank was in the private sector. The Reserve Bank of India was nationalized in 1949. Since then, he has been working as a bank of the Government of India.

Nationalization of Banks:

Nationalized 14 banks of Private banks whose deposits were more than 50 crores in 1969 Smt. Indira Gandhi was the Prime Minister of India at that time. In addition, National Bank of 6 banks, which had more than 200 crore deposits in 1980.

In 1969, the Indian government had banned the establishment of a private bank. The ban in 1993-94 was canceled. On September 4, 1993, New Bank of India was merged with the Punjab National Bank. So, the number of nationalized banks is 19.

Lead Bank:

According to the recommendations of Dhananjay Gadagil Committee and according to the proposed structure of F. Nariman Committee , the Lead bank scheme was started in 1969. Regional development approach was the basis of this. District was selected for regional development.

Regional Rural Bank (RRB's)

Regional rural banks were established in the year 1975. 196 banks had been set up under this, but they are currently merged. So their number is decreasing.

Banking Ombudsman Scheme

Since 1995, Bank Ombudsman Scheme has been started from June 1995 for the purpose of improving customer service in the Indian bank.

Post a Comment