History Of Banks
Firstly there were no banks in India. people were mainly depend on moneylenders (Sahukar) for credit . In 1770 "Bank of Hindustan" open in India. This is the first bank in India but there is no control of Indian people in this bank. All the control were in hand of Foreign Bank or European Countries. Due to some reason it got failed and closed down in 1829.
In 1786 second bank " General Bank Of India" opened in India which is also in control of Foreign Bank.
When "East Indian Company" came in India, they felt need of Bank for their trading and transactions. So they open some following Banks.
Bank of calcutta (1809) which later change into Bank of Bengal
Bank of Bombay
Bank of Madras
In 1861 the above banks get permission of printing notes
In 1921 these 3 bank merge into single bank named "Imperial Bank of India" and later in 1955 the bank get nationalised and changes into "State Bank OF India" So we can say SBI is India's first national Bank.
Rise of RBI
Back then Banks get opened only under Company act. There were no special process, no CRR, no SLR, no need of any kind of paper work. Due to this till 1930 there were more than 1200 banks operating India. In 1929 when "The Great Depressions" comes in USA it adversely effect the British Government, due to this numbers of bank shut down in India. Due to sudden close of bank a need of Regulating Body is felt. To fulfill this need in 1934 RBI act passed and in 1935 RBI start working as regulatory body over banks.
Even after our Independence ,these banks were working only for private sectors benefits and Indian government has no control over these banks. So to control over these banks in 1955 State Bank OF India get nationalised. It means now SBI completely working under government . In 1969 14 more banks get nationalised . Any bank who had deposit of 50 crore or more got nationalised. In 1980 any bank who has deposit value 200 crore or more got nationalised. So in 1980 , 6 more bank got nationalised . These banks are following
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