Banking System - History of Indian Banking - Banking System - Career Power - IBPS Bank PO_Clerk by Bank Power

History of Indian Banking Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madr
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  History of Indian Banking Banking in India srcinated in the last decades of the 18th century. Thefirst banks were The General Bank of India which started in 1786, and theBank of Hindustan, both of which are now defunct. The oldest bank inexistence in India is the State Bank of India, which srcinated in the Bankof Calcutta in June 1806, which almost immediately became the Bank ofBengal. This was one of the three presidency banks, the other two beingthe Bank of Bombay and the Bank of Madras, all three of which wereestablished under charters from the British East India Company. For manyyears the Presidency banks acted as quasi-central banks, as did theirsuccessors. The three banks merged in 1921 to form the Imperial Bank ofIndia, which, upon India's independence, became the State Bank of India.Indian merchants in Calcutta established the Union Bank in 1839, but itfailed in 1848 as a consequence of the economic crisis of 1848-49. TheAllahabad Bank, established in 1865 and still functioning today, is theoldest Joint Stock bank in India.(Joint Stock Bank: A company that issuesstock and requires shareholders to be held liable for the company's debt) Itwas not the first though. That honor belongs to the Bank of Upper India,which was established in 1863, and which survived until 1913, when itfailed, with some of its assets and liabilities being transferred to theAlliance Bank of Shimla. When the American Civil War stopped the supply of cotton to Lancashirefrom the Confederate States, promoters opened banks to finance trading inIndian cotton. With large exposure to speculative ventures, most of thebanks opened in India during that period failed. The depositors lost moneyand lost interest in keeping deposits with banks. Subsequently, banking inIndia remained the exclusive domain of Europeans for next severaldecades until the beginning of the 20th century. Foreign banks too startedto arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escomptede Paris opened a branch in Calcutta in 1860, and another in Bombay in1862; branches in Madras and Puducherry, then a French colony, followed.HSBC established itself in Bengal in 1869. Calcutta was the most activetrading port in India, mainly due to the trade of the British Empire, and sobecame a banking center. The first entirely Indian joint stock bank was theOudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. ( (/mainsite/explorecourse) Study (Http://Gradestack.Com/IBPS-Bank-PO-Clerk-By-Bank-Power/General- Awareness/2890/Subject-Study)1. Indian Financial System( 2. Banking System(   Banking System - History of Indian Banking  CommentThe next was the Punjab National Bank, established in Lahore in 1895,which has survived to the present and is now one of the largest banks inIndia. Around the turn of the 20th Century, the Indian economy was passingthrough a relative period of stability. Around five decades had elapsedsince the Indian Mutiny, and the social, industrial and other infrastructurehad improved. Indians had established small banks, most of which servedparticular ethnic and religious communities. The presidency banks dominated banking in India but there were alsosome exchange banks and a number of Indian joint stock banks. All thesebanks operated in different segments of the economy. The exchangebanks, mostly owned by Europeans, concentrated on financing foreigntrade. Indian joint stock banks were generally undercapitalized and lackedthe experience and maturity to compete with the presidency andexchange banks. This segmentation let Lord Curzon to observe, In respectof banking it seems we are behind the times. We are like some oldfashioned sailing ship, divided by solid wooden bulkheads into separateand cumbersome compartments. The period between 1906 and 1911,saw the establishment of banks inspired by the Swadeshi movement. TheSwadeshi movement inspired local businessmen and political figures tofound banks of and for the Indian community. A number of banksestablished then have survived to the present such as Bank of India,Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and CentralBank of India.   Post-independence India's independence marked the end of a regime of the Laissez-faire forthe Indian banking. The Government of India initiated measures to play anactive role in the economic life of the nation, and the Industrial PolicyResolution adopted by the government in 1948 envisaged a mixedeconomy. This resulted into greater involvement of the state in differentsegments of the economy including banking and finance. The major stepsto regulate banking included:The Reserve Bank of India, India's central banking authority, wasnationalized on January 1, 1949 under the terms of the Reserve Bank ofIndia (Transfer to Public Ownership) Act, 1948 (RBI, 2005b). In 1949, theBanking Regulation Act was enacted which empowered the Reserve Bankof India (RBI) to regulate, control, and inspect the banks in India. The Banking Regulation Act also provided that no new bank or branch ofan existing bank could be opened without a license from the RBI, and notwo banks could have common directors. By the 1960s, the Indian banking 38 Like Share  CommentCommentindustry had become an important tool to facilitate the development of theIndian economy.At the same time, it had emerged as a large employer, and a debate hadensued about the possibility to nationalize the banking industry. IndiraGandhi, the-then Prime Minister of India expressed the intention of the GOIin the annual conference of the All India Congress Meeting in a paperentitled Stray thoughts on Bank Nationalization. The paper was receivedwith positive enthusiasm. Nationalisation The GOI issued an ordinance and nationalised the 14 largest commercialbanks with effect from the midnight of July 19, 1969. JayaprakashNarayan, a national leader of India, described the step as a masterstrokeof political sagacity. Within two weeks of the issue of the ordinance, theParliament passed the Banking Companies (Acquisition and Transfer ofUndertaking) Bill, and it received the presidential approval on 9 August1969.A second dose of nationalization of 6 more commercial banks followed in1980. The stated reason for the nationalization was to give thegovernment more control of credit delivery. With the second dose ofnationalization, the GOI controlled around 91% of the banking business ofIndia. Later on, in the year 1993, the government merged New Bank ofIndia with Punjab National Bank. It was the only merger betweennationalized banks and resulted in the reduction of the number ofnationalised banks from 20 to 19. After this, until the 1990s, thenationalised banks grew at a pace of around 4%, closer to the averagegrowth rate of the Indian economy. Liberalisation In the early 1990s, the then Narsimha Rao government embarked on apolicy of liberalization, licensing a small number of private banks. Thesecame to be known as New Generation tech-savvy banks, and includedGlobal Trust Bank (the first of such new generation banks to be set up),which later amalgamated with Oriental Bank of Commerce, AxisBank(earlier as UTI Bank), ICICI Bank and HDFC Bank.This move, along with the rapid growth in the economy of India, revitalizedthe banking sector in India, which has seen rapid growth with strongcontribution from all the three sectors of banks, namely, government 38 Like Share 38 Like Share  Commentbanks, private banks and foreign banks. The next stage for the Indianbanking has been set up with the proposed relaxation in the norms forForeign Direct Investment, where all Foreign Investors in banks may begiven voting rights which could exceed the present cap of 10%, at presentit has gone up to 74% with some restrictions. Full NameEmailPasswordContact Number   Account Already Exist? Login Here (/web/login)Facebook Connect Create Account mail us at (  About Us (/mainsite/aboutus)   Blog (/blog/)   Contact Us (/mainsite/contact)   Terms and Conditions (/mainsite/policy)Developers (/mainsite/developer)   Publishers (/mainsite/publisher)   38 Like Share Next Structure Of Bankin  > Please Register  f  or 


Jul 28, 2017
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