Good Banking Getting Better Internship Report
emergence of a small number of large banks with wide network of branches.Second, increase in the popularity of bank accounts and a large-scale use of cheques.In 1946, the labour government nationalised the bank of England andtransferred the existing stock to the nominee of British treasury. In 1955, theBritish Banks made a departure from traditional banking by undertaking hire-purchase finance for companies buying industrial plants and machinery and took interest on hire-purchase finance.
At the time of independence, there were 631 offices of scheduled banks inPakistan, of which 487 were located in West Pakistan alone.As a new country without resources it was very difficult for Pakistan to run its ownbanking system immediately. Therefore, the expert committeerecommended that the Reserve Bank of India should continue to functionin Pakistan until 30
September 1948, so that problems of time and demandliability, coinage currencies, exchange etc. be settled between India andPakistan. The non-Muslims started transferring their funds and accounts toIndia. By the end of June 1948 the number of officers of scheduled banksin Pakistan declined from 631 to 225. There were 19 foreign banks with thestatus of small branch offices that were engaged solely in export of cropfrom Pakistan, while there were only two Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The customers of the bank are notsatisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favour of Govt. of Pakistan. The Govt. of Pakistandecided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-I-Azam inaugurated the State Bank of Pakistanon July 1, 1948. Thus a landmark was made in the history of banking when