History of Banking in India - One Liner Key Points

Banking Evolution in India - Key Points

• The Commercial Banking in India was started in the late 18th Century.
• The first Bank of India was the Bank of Hindustan and it was established in 1770 in Kolkata under the European Management.
• After 1770, the evolution of Banking in India can be divided into three parts i.e. Phase I (Early Banking Period Before Nationalization in 1969), Phase II (From the Nationalization in 1969 up to the Liberalization and Reforms in Banking in 1991) and Phase III (From 1991 onward) New Era.
• The General Bank of India was set up in 1786.
• There were the Presidency Banks in the British Period i.e. The Bank of Calcutta(1806), Bank of Madras(1843) and Bank of Bombay(1840) under the charters from the British East India Company.
• Bank of Calcutta (1806) later became the Bank of Bengal.
• In 1921, the three Presidency Banks merged and the Imperial Bank of India was formed.
• The Imperial Bank of India was renamed as the State Bank of India in 1955. The State Bank of India is the oldest Bank of India on that context.
• The Union Bank was established in 1839 by Indian merchants but it was failed.
• The Allahabad Bank was established in 1865. It is the oldest Public Sector Bank which has branches all over in India.
• The Allahabad Bank is 145 years old. It is one of the oldest Joint Stock Bank of India.
• The First Bank of India having limited liability is Oudh Commercial Bank (1881) in Faizabad.
• Oudh Commercial Bank was managed by the Indian Board and it failed in 1958.
• The first bank of India which was completely managed by Indian is Punjab National Bank and it was established in 1895 in Lahore.
• The first Commercial Bank of India which was owned and managed by the people of India is Central Bank of India (1911). It was the first “Swadeshi” Bank of India.

• Many Banks were created between 1906 to 1911 as an effect of Swadeshi movement by the local businessmen and political personalities.
• Canara Bank, Bank of India and Corporation were established in 1906, Indian Bank was established in 1907 and Bank of Baroda was established in 1908.
• Canara Bank got the ISO Certificate for the first time.
• Bank of India was the first Indian Bank outside the country.
• HSBC Bank (1987) was the first Foreign Bank to have a branch in India. It was also the first bank to introduce ATM in India.
• ICICI (Industrial Credit and Investment Corporation of India) is the first Universal Bank of India. It first provided the Internet Banking facility in India.
• Presidency Bank (1833) first introduced Savings Account.
• Bengal Bank first introduced the Cheque System in 1833.
• State Bank of India first sells the Mutual Funds.
• Central Bank of India first provided Credit Cards.
• Prathama Bank was the first Regional Rural Bank in India.
• Reserve Bank of India was established on 1st April, 1935 according to the provisions of RBI act, 1934. It was created as per the recommendations of “Hilton Young Commission” / “Royal Commission on Indian Currency and Finance”. It was established in Kolkata and shifted to Mumbai in 1937. RBI was nationalized in 1949 under the RBI (Transfer to Public Ownership) act, 1948.
• DICGC (Deposit Insurance and Credit Guarantee Corporation) which is a subsidiary of RBI was established in 1978.
• NABARD (National Agriculture and Rural Development Bank) which is a subsidiary of RBI was established in 1982.
• National Housing Bank, which is a subsidiary of RBI, was established in 1988.
• BRBNMPL (Bharatiya Reserve Bank Note Mudran Private Limited) was established in 1995. It is a subsidiary of RBI.
• State Bank of India is the largest Public Sector Bank of India which was established on the recommendation of Gorwala Committee on 1st July, 1955.
• Regional Rural Banks were formed in 1975 for the development of rural economy.
• Citi Bank is the first Bank to introduce the voice Biometric in India.
• HDFC Bank is the first Bank to introduce Robots in the banking service.