Banking Knowledge

Some more points:

·         Modern commercial banking made its beginning in India with the setting of the first presidency – 1806

·         Two other presidency banks were setup in

1)            Bank of Bombay – 1840

2)            Bank of Madras – 1843

                

These are private share holder banks. The company which also contributed to the share capital of each of them is east India Company. These banks were given monopoly of Govt banking after 1823 they were also given the right of note. This right was however taken over by the Govt in – 1862.

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The presidency banks were amalgamated into the Imperial Bank of India (IBI) which was established in 1921

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The Allahabad Bank was established in 1865

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Punjab National Bank was established in 1894

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Under the stimulus of Swadeshi movement, some other large banks of today that got established between 1906 and 1913 are – Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, Bank of Mysore.

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According to the parliamentary act, IBI was acquired by the RBI

·         RBI named IBI as State Bank of India in 1958

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In 2008, State Bank of Saurashtra was merged with SBI

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In 2010, State Bank of Indore was merged with SBI

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The first Central Bank in the world was set up in 1668 in SWEDEN

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Effective central banking came in to being in 1694 with establishment of BANK OF ENGLAND

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With a view to having co-ordinated regulation of Indian banking, the Indian Banking Act was passed in March 1949. It powers all important aspects of banking from licensing the banks to their liquidation.

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