Banking in India

Banking in India

Def of Bank as per Banking regulating act of 1949 is the “Banking company is as company which transacts business of banking in India”

It means 1)maintain deposit Account 2) issue and pay cheques 3)collects cheques from customers

Function of Commercial bank in India-

1)Payment system

2)Financial Intermediation

3)Financial Services

Banking in India 1)Commercial Banking 2)Cooperative banks

The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct

Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.

Allahabad bank started in 1865 and Punjab National Bank started in 1895.

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b)

Nationalisation in the 1960s - nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980

Liberalisation in the 1990s...