History of Indian Banking

BANKING
Banking Regulation Act of India, 1949 defines Banking

as “accepting, for the purpose of lending or of investment of
deposits of money from the public, repayable on demand or
otherwise or withdrawable by cheque, draft order or otherwise.”
The Reserve Bank of India Act, 1934 and the Banking
Regulation Act, 1949, govern the banking operations in India.
Stages in History of Banking in India
History of Banking has been divided into Stages like:

 Pre-independence stage
 Post Independence stage
 Nationalization of Banks
 Introduction of Financial Sector Reforms
 IT revolution in Banks
Pre-independence stage:
 The first bank of a joint stock variety was Bank of Bombay,
established in 1720 in Bombay.
 The first ‘Presidency bank’ was the Bank of Bengal established

in Calcutta on June 2, 1806 with a capital of Rs.50 lakh.
The Bank of Bombay was the second Presidency bank set up in

1840 with a capital of Rs.52 lakh.
The Bank of Madras the third Presidency bank established in July

1843 with a capital of Rs.30lakh.
 They were known as Presidency banks as they were set up in the
three Presidencies that were the units of administrative jurisdiction
in the country for the East India Company.
 The Presidency banks were governed by Royal Charters.
 The first Indian owned bank was the Allahabad Bank set up in
Allahabad in 1865,
 The second, Punjab National Bank was set up in 1895 in Lahore,

and
 The third, Bank of India was set up in 1906 in Mumbai.
 All these banks were founded under private ownership.

Post Independence stage:
 When the country attained independence, Indian banking was

entirely in the private sector.
In addition to the Imperial Bank, there were five big banks, each
holding public deposits aggregating Rs.100 crore and more,viz.
Central Bank of India Ltd., Punjab National Bank Ltd., Bank of
India Ltd., Bank of Baroda Ltd. and United Commercial Bank Ltd.
 A major development during this period was the enactment
of the Banking Regulation Act and supervise the banking
sector. empowering the Reserve Bank to regulate .
 In 1955, the Imperial Bank of India was nationalized and

was given the name “State Bank of India”.
 It was established under State Bank of India Act, 1955.

Structure of Banks in India
Structure of Banks in India
Currently, India has 81 scheduled commercial banks (SCBs) –
28 (19 Nationalised banks + 8 SBI Group + 1 IDBI), 29 Foreign
banks and 24 Private banks.
 They have a combined network of over 53,000 branches and
17,000 ATMs.
 The public sector banks hold over 75 percent of total assets of
the banking industry, with the private and foreign banks holding
18% and 7% respectively.
List of commercial banks
Public sector bank
State Bank of India Punjab & Sind Bank
Dena Bank Bank of Maharashtra
Allahabad Bank Punjab National Bank
Indian Bank Canara Bank
Andhra Bank Syndicate Bank
Indian Overseas Bank Central Bank of India
Bank of Baroda Union Bank of India
Oriental Bank of Commerce Corporation Bank
Bank of India United Bank of India
IDBI Bank UCO Bank
Vijaya Bank
Indian private banks
*Axis Bank *IndusInd Bank
*Bank of Rajasthan *ING Vysya Bank
*Bharat Overseas Bank *Jammu & Kashmir Bank
*Catholic Syrian Bank *Karnataka Bank Limited
*Centurion Bank of Punjab *Karur Vysya Bank
*City Union Bank *Kotak Mahindra Bank
*Development Credit Bank *Lakshmi Vilas Bank
*Dhanalakshmi Bank *Nainital Bank
*Federal Bank *Ratnakar Bank
*Ganesh Bank of Kurundwad *SBI Commercial and International Bank
*HDFC Bank *South Indian Bank
*ICICI Bank *Tamilnad Mercantile Bank Ltd.
*YES Bank
E-Banking
E-Banking
Many banks have modernized their services with the

facilities of computer and electronic equipments.
The electronics revolution has made it possible to provide
ease and flexibility in banking operations to the benefit of the
customer.
The e-banking has made the customer say good-bye to
huge account registers and large paper bank accounts
• The e-banks, which may call as easy bank
offers the following services to its customers
• Credit Cards – Debit Cards
• ATM
• E-Cheques
• EFT (Electronic Funds Transfer)
• D-MAT Accounts
• Mobile Banking
• Telephone Banking
• Internet Banking
• EDI (Electronic Data Interchange)
Benefits of E-banking
To the Customer
• Anytime Banking – Managing funds in real time
and most importantly, 24 hours a day, 7days a
week.
• Brings down “Cost of Banking” to the customer
over a period of time.
• Cash withdrawal from any branch / ATM
• On-line purchase of goods and services including
online payment for the same.
To the Bank:
 Innovative, scheme, addresses competition and present the bank

as technology driven in the banking sector market .
 Reduces customer visits to the branch and thereby human

intervention
 Inter-branch reconciliation is immediate thereby reducing chances

of fraud and misappropriation

History of Indian Banking

Uploaded by

Copyright:

Available Formats

History of Indian Banking

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

History of Indian Banking

Uploaded by

Copyright:

Available Formats

BANKING

Banking Regulation Act of India, 1949 defines Banking

History of Banking has been divided into Stages like:

 The first ‘Presidency bank’ was the Bank of Bengal established

The Bank of Bombay was the second Presidency bank set up in

The Bank of Madras the third Presidency bank established in July

 The Presidency banks were governed by Royal Charters.

 The second, Punjab National Bank was set up in 1895 in Lahore,

 The third, Bank of India was set up in 1906 in Mumbai.

 All these banks were founded under private ownership.

 When the country attained independence, Indian banking was

 In 1955, the Imperial Bank of India was nationalized and

 It was established under State Bank of India Act, 1955.

Many banks have modernized their services with the

 Innovative, scheme, addresses competition and present the bank

 Reduces customer visits to the branch and thereby human

 Inter-branch reconciliation is immediate thereby reducing chances

You might also like