History of Banking in India 3/4

Banking Structure:

 Government Banks are classified as I) Central           II) State           III) Union Teritory

a)      Scheduled banks (RBI Act 1934): All commercial banks, Indian and Foreign, regional rural banks, and state co-operative banks.

b)      Non Scheduled Banks

1. State Bank of India:

Associate Banks of SBI established in 1942

I)                   State Bank of Hyderabad ( Established By Nizam in 1949 )

II)                State Bank of Bikaner and Jaipur

III)             State Bank of Indore (Madhya Pradesh)

IV)             State Bank of Mysore

V)                State Bank of Patiala

VI)             State Bank of Saurashtra (Gujarat)

VII)          State  Bank of Travancore

1. Nationalized Banks (Indira Gandhi Nationalized 14 banks in 1969 and then 6 banks are also nationalized in 1980)

 List of 14 Banks which are Nationalized in 1969 by Indira Gandhi.

• Allahabad bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Dena Bank
• Indian Bank
• Indian Overseas Bank
• Punjab National Bank
• Union Bank of India
• Syndicate Bank
• UCO Bank
• United Bank of India

List of 6 Banks which are nationalized in 1980

·         Andhra Bank

·         Corporation Bank

·         Punjab and Sind Bank

·         New Bank of India*

·         Oriental Bank of Commerce

·         Vijaya Bank

*Important Point: In 1994, New Bank of India is merged with Punjab National Bank and thus forming a total of 19 Nationalized Banks.

2. Commercial Banks (Started in 1991, Introduced by Prime Minister: P V Narsimha Rao along with Economic Minister Manmohan Singh)
3. Regional Rural Banks (By Indira Gandhi , Every district should have 1 RRB – total 640 districts and 6 lakh villages).
• For RRBs
• 50% money is given by Central Bank
• 35% money is given by Sponsored Bank
• 15% money is given by State Bank

Examples of RRBs: 1) SBI sponsored RRB – Andhra Pradesh Grameena Vikas Bank (Undertaking Government of India).

2)      SBH sponsored RRB – Deccan Grameena Bank

3)      Andhra Bank sponsored RRB – Chaitanya Bank (Guntur), Godavari Grameena Bank

4)      Syndicate Bank sponsored RRB – Andhra Pradesh Grameena Pragathi Vikas Bank ( Kadapa )

5)      Indian Bank sponsored RRB – Sapthagiri Bank ( Chittoor, Krishna )

4. Foreign Banks
5. Foreign Commercial Banks: Banks operating in India are the Banks of other countries having their branches in India.

Continued...4...

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