According to
Indian banking history, The British East India
Company established “The Hindustan Bank” in Calcutta
and Bombay in 1870, was the earliest Indian Bank
banking in India
on modern lines started with the establishment of three presidency banks under
Presidency Bank’s act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of
Madras.
IMPERIAL BANK OF INDIA
The first major
event in the history of banking in India
took place in 1919 when the presidency banks were amalgamated and “Imperial
bank of India”
was set up. Banking companies Inspection ordinance was passed in January, 1946
and in February, 1946 the Banking Company’s restriction of Branches Act was
passed. In 1949, the Banking companies Act was passed which was later amended
to read as Banking Regulation Act.
RESERVE BANK OF INDIA
Reserve Bank of
India Act was passed in 1934 & Reserve Bank of India (RBI) was constituted
as an apex bank without major government ownership. Banking Regulations Act was
passed in 1949. This regulation brought Reserve Bank of India under government control.
Under the act, RBI got wide ranging powers for supervision &control of
banks. The Act also vested licensing powers & the authority to conduct
inspections in RBI
NATIONALIZATION OF BANKS
On 19 July 1969, the
Government acquiring ownership and control of 14 major banks in the country an
Ordinance. This was done to bring commercial banks in to the mainstream of
economic development with definite social obligations and objectives. Later, on
5 April 1980, six
more commercial banks were nationalized.
REFORMS OF EARLY 1990’S
After
submissions of recommendations of the committee headed by Chairman Shri M.
Narasimham, a comprehensive reform of the banking system was introduced in
1992-93. the main aim of the reform measures was to ensure that the balance
sheets of banks reflected their actual financial health.
Companies or
have lent money to people who needed it for business or personal purposes.
Banks now also offer a wide range of other services such as exchanging foreign
currency, advising on investments and insurance and acting as executors and
trustees.
