Interesting X Series : Facts About Banks Of India

By Ravi
In banks
Apr 7th, 2012
1 Comment


Interesting X Series : Facts About Banks Of India

The Ace : Reserve Bank of India

Banks are the integral part of the Indian Economy. The pathway from the first ever bank to the current scenario where we have numerous banks at our service has been very interesting.

As a part of our new series “Interesting X,” Today we have some of those interesting facts about “The Banks of India.” 

“In early times in India, the remittance of money involved “Hundies,” a popular and indigenous credit instruments. The Hundies were issued by Shroffs, Sahukars, Shahus or Mahajans at that time.”

“Banking in India started in last decades of 18th century with establishment of The General Bank of India (1786) and Bank of Hindustan (1790). Both are now inoperative.”

3 presidency banks were established in first half of 19th century by government of the East India Company,The Bank of Bengal (1806), The Bank of Bombay (1840) and The Bank of Madras (1843). 

“These 3 presidency banks merged to form The Imperial Bank of India (1921) which acted as a banker for other banks.”

The Allahabad Bank (1865) is the oldest Joint Stock Bank in India which is currently functional.”

Punjab National Bank (1895) was established in Lahore. It was the first bank purely managed by Indians.

“Between 1906 and 1911 thousands of banks were established in India and the establishments were inspired by the Swadeshi movement.”

At least 94 banks in India failed between 1913 and 1918. It was mainly during First World War (1914-1918).”

Central Bank of India (1911) was first Indian commercial bank which was wholly owned and managed by Indians.”

“Central Bank of India was also called India’s First Truly Swadeshi bank.

The Reserve Bank of India (RBI) was established in 1935 as the Central Bank of the Country. RBI was nationalised in 1949.”

“RBI was established with initial share capital worth Rs. 5 crores with 5 Lakh Rs. 100 share dividend.”

The State Bank of India was known as The Imperial Bank of India prior to 1955.

When renamed in July 1955, The Imperial Bank of India was nationalised as SBI.

In 1959, 8 state-associated banks were taken over by SBI as its subsidiaries. Those were State Bank of Hyderabad, State Bank of Bikaner, State Bank of Jaipur, State Bank of Saurashtra, State Bank of Patiala, State Bank of Mysore, State Bank of Indore and State Bank of Travancore.

In 1963, State Bank of Bikaner and State Bank of Jaipur merged to form State Bank of Bikaner and Jaipur.

In 1969, 14 major commercial banks each having deposits worth Rs. 50 crores or more were nationalised.

In 1980, 6 more commercial banks each having deposits worth more than Rs. 200 crores or more were nationalised.

The only merger between nationalised banks was when government merged New Bank of India with Punjab National Bank in 1993. After this the total number of nationalised banks reduced to 19.

In the early 1990’s government licensed some private banks too. These were Global Trust Bank which merged with Oriental Bank of Commerce later, Axis Bank which was known as UTI bank earlier, ICICI Bank and HDFC Bank. These were known as New Generation tech-savvy banks.

As a part of our series “Interesting X” we will come back soon with more interesting facts related to Indian Economy. Visit our technical Interesting X waves too. Visit us again for more

About the Author

- Co-Founder of IdleBrains. Software engineer by profession, a poet at heart and tech writer by passion. Loves sweet music and cricket. Admirer and follower of Sachin Tendulkar. Follows his hobbies as “TheGhost”. Visit the poet here.

One Response to “Interesting X Series : Facts About Banks Of India”

  1. […] been almost 5 weeks since we posted our last article. It was a sudden break after getting a very good response. We got queries asking why we stopped. […]

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