Banking System in India at a Glance

Overview of Indian Banking System

Special Key Points On Banking System in India

1. The 1st Bank established in India was- Bank of Hindustan in 1970 at Kolkata.
2. Presidency Banks are: 1.Bank of Bengal in 1806, 2. Bank of Bombay in 1840, and 3. Bank of Madras in 1843.
3. 1st bank of limited managed by Indians and founded in 1881 was – Oudh Commercial Bank.
4. ‘Gift-Edged Securitas” means Securities issued by the Government.
5. 1st Indian Bank was- Punjab National Bank, in 1891.
6. Bank of India (1906, Mumbai) –was the 1st Indian bank opened its branch in Londoa (1946) outside of India.
7. Fortune Global rank of SBI – 232.
8. “Letter of Credit”- Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank.
9. “Demand Draft” is called a “Banker’s Cheque”.
10. Long term loan provide to the farmer- Land Development Bank.
11. “Dow Jones” – Share Market index of New York.
12. Reserve Bank of India:

Reserve Bank of India - Important Key Points

RBI act pass in 1934 and RBI established in 1935, 1st Governor – Sir Osborn Smith.

On January In 1949 Reserve Bank of India taken over by the Government and 1st Indian Government was C.D.Deshmukh.

Major Activities of RBI: 1. It regulates the currency and credit system in India. 2. Foreign exchange reserves are kept by RBI. 3. It maintains the exchange value of the Rupee. 4. One rupee note are not issue by RBI. 5. RBI controls the finance system and Inflation with the activities of “Open Market Operation “by Trade Bills. 6. RBI is responsible for the collection and publication of monetary and financial information. 7. Acting as an agent of Government in respect of India’s’ membership of the IMF.

The animal on the insignia of the RBI is Panther.

Quantitative credit control do not include RBI directives.

• Bank Rate: it the rate at which the Reserve Bank of India gives credit to commercial banks.
• Statutory Liquid Ratio: it the Ratio by which the Banks are required to maintain a certain ratio between their cash in hand is total assets.
• Repo Rate: it is the Rate at which the banks lend to Reserve Bank of India.

14 Nationalised Banks (19 July in 1969) with their Headquarters:

Name of The Bank	HeadQuarters
Bank of India	Mumbai
UCO Bank	Kolkata
Allahabad Bank	Kolkata
Union Bank of India	Mumbai
Bank of Baroda	Vadodara
Indian Overseas Bank	Chennai
Canara Bank	Bangalore
Punjab National Bank	New Delhi
Indian Bank	Chennai
Syndicate Bank	Manipal
Dena Bank	Mumbai
Central Bank of India	Mumbai
United Bank of India	Kolkata
Bank of Maharashtra	Pune

Some Important Stock Exchange Institution and Year of Formation:

• Securities and Exchange Board of India – In 1988 (Mumbai).
• Over the counter exchange in India – in 1990 (Mumbai).
• National Stock Exchange – in 1992 (Mumbai).
• Bombay Stock Exchange - in 1875 (Mumbai) it was the oldest stock exchange in India.
• Ahmadabad Stock Exchange - 1894
• Calcutta Stock exchange – 1908.

Some Important Financial Institution:

• IFCI- Industrial Finance Corporation of India – in 1948-Activities: Medium and Long term loan provide for Industry development.
• ICICI – Industrial Credit and and Investment Corporation of India – in 1955(Mumbai) – Activities: it is a public sector and its main aim to development Small and Medium industry.
• SIDBI- Small Industries Development Bank of India – in 1989 (Lucknow) – Main aim to development small industries.
• IDBI Industrial Development Bank of India – in 1964(Mumbai) -  1^st set up as a development organisation in 2004, 1^st October its works as a General Business Bank and its name change from IDBI to IDBI ltd. It is the apex of Industrial Finance in India.
• NHB –National Housing Bank – in 1988 (New Delhi) – it is a part of RBI and provides Loan and economical activities for house establishment project.
• EXIM –Export-Import Bank of India – on 1^st January, 1982 (Mumbai) – Provides economical support and development international business.
• NABARD – National Bank for Agriculture and Rural Development – in 1982(Mumbai) – Activities: Financing Rural Development.

6 Banks Nationalised on 15^th April in 1980 with their Headquarters are given below:

Vijay Bank	Bangalore
Punjab and Sind Bank	New Delhi
Corporation Bank	Mangalore
New Bank of India	Amritsar
Oriental Bank of Commerce	New Delhi
Andhra Bank	Hyderabad

• In 1993- New Bank of India and Punjab National Bank were merged.
• Now in India there have 27^th Nationalised bank including Group of State Bank are given below:
• State Bank of Bikaner and Jaipur. State Bank of Hyderabad. State bank of India. State bank of Indore, State Bank of Travancore.  State Bank of Mysore.  State Bank of Patiala. State Bank of Sourastra.
• Bharatiya Mahila Bank – established by the merged of SBI-Indore in 2009 & Now It was Merged With STATE BANK OF INDIA in 2017.