"INDIAN BANKING HISTORY"
Modern Banking in India originated dates back to the 18th century. Banking concept in India was brought by Europeans and their houses in Calcutta and Bombay began to conduct Banking Business. In 1770 Hindustan Bank was established and it was the first bank at Calcutta under European Management during the period of 1829-32. The First Bank in India named is Bank of Bengal was established in 1786 in Calcutta.
In 1881 the First Bank of limited was founded by Indians. Banking History of India is divided into four major categories-
- Early Phages (1786 – 1935)
- Pre-Independence Banking History (1935 - 1969)
- Post- Independence Banking History (1969 – 1990)
- Modern Phase (1990 – till date)
Early Phages (1786 – 1935):
- In this period General Bank of India was established in 1786. But it failed in 1791.
- Bank of Calcutta (it was the 1st Presidency Bank during the British Raj) was established in Calcutta on 2nd June, 1806. Bank of Calcutta renamed as the Bank of Bengal on 2nd January, 1809.
- Bank of Bombay (2nd Presidency Bank) was established in Bombay on 15th April, 1840.
- Bank of Madras (3rd Presidency Bank) was established in Madras on 1st July, 1843. This bank worked as Central Bank in India for many years under British Rule.
- Allahabad Bank (the oldest Joint Stock Bank in India) was established in 1865. This bank also is the oldest Public Sector Bank in India.
- The Hongkong and Shanghai Banking Corporation Limited (HSBC) were established in Bengal in 1869.
- Oudh Commercial Bank (1st bank of limited managed by Indians) was established in 1881 at Faizabad. But it failed in 1958.
- Punjab National Bank (PNB) was established in 1895 in Lahore in Punjab province of Undivided India.
- Central Bank of India (1st Indian commercial bank which wholly owned and managed by Indians) was established in 1911. This bank also was called “India’s 1st Truly Swadeshi Bank”.
- Bank of Calcutta, Bank of Bombay, Bank of Madras were attached to form Imperial Bank of India on 27th January, 1921.
- Bank of India was established in 1906.
- Bank of Baroda was established in 1908.
- Reserve Bank of India Act was passed in 1934.
Pre- Independence Banking History (1935 - 1969):
- Reserve Bank of India (RBI) was established in 1st April, 1935 on the recommendation of Hilton-Young Commission and was nationalized in 1st January, 1949. The Reserve Bank of India is India’s Central Banking Institution, which controls the Monetary Policy of the Indian Rupee.
- The Imperial Bank of India was renamed as the State Bank of India.
- State Bank of India was established in 1st July, 1955 and was nationalized in 2nd June, 1956. This is an Indian multinational, public sector banking and financial services company. State Bank of India was followed by formation of its 7 associate banks in 1959.
- The Industrial Credit and Investment Corporation of India Limited (ICICI) were incorporate at the initiative of World Bank in 1955.
- Industrial Development Bank of India Limited (IDBI) was established in 1964.
Post- Independence Banking History (1969 – 1990):
- On 19th July, 1969 14 Commercial Banks were nationalized. Smt. Indira Gandhi was the Prime Minister of India during in this time.
These banks were –
- Bank of India
- Punjab National Bank (PNB)
- Canara Bank
- Dena Bank
- United Bank
- Central Bank of India
- Indian Overseas Bank
- Syndicate Bank
- Allahabad Bank
- Union Bank of India
- Indian Bank
- Bank of Baroda
- United Commercial Bank
- United Bank of India (UBI)
- Bank of Maharashtra
On 15th April, 1980 6 more Commercial Banks were nationalized. These banks were –
- Punjab and Sindh Bank
- Corporation Bank
- The New Bank of India (merged with PNB in 1993)
- The Oriental Bank of Commerce
- Vijaya Bank
- Regional Rural Banks (RRBs) was established on the recommendation of Narasimhan Committee (1975) from October 1975 and onwards.
- National Bank of Agriculture and Rural Development (NABARD) was set up in 1982.
- United Commercial Bank was changed as UCO Bank in 1985.
Modern Phase (1990 – till date):
- Bharatiya Mahila Bank (1st women bank of India) was established on 19th November, 2013 on the occasion of the 94th Birth Anniversary of former Indian Prime Minister Indira Gandhi.
- Reserve Bank of India (RBI) gave license to Kotak Mahindra Bank in 2003, Yes Bank in 2004, Bandhan Bank 2014 and IDFC Bank in 2015.
- On 28th October, 2015 Indian Prime Minister Narendra Modi inaugurates the IDFC Bank.