Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword or section
Like this
53Activity
0 of .
Results for:
No results containing your search query
P. 1
Banking Services in India

Banking Services in India

Ratings:

2.0

(1)
|Views: 789 |Likes:
Published by Vinaykumar Singh

More info:

Published by: Vinaykumar Singh on Jul 26, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

08/08/2012

pdf

text

original

 
 BANKING SERVICES IN INDIA
I. HISTORY OF BANKING IN INDIA
There are three different phases in the history of banking in India.1)Pre-Nationalization Era.2) Nationalization Stage.3)Post Liberalization Era.1) Pre-Nationalization Era:In India the business of banking and credit was practiceseven in very early times. The remittance of money through Hundies,an indigenous credit instrument, was very popular. The hundies wereissued by bankers known as Shroffs, Sahukars, Shahus or Mahajansin different parts of the country.The modern type of banking, however, was developed bythe Agency Houses of Calcutta and Bombay after the establishment of Rule by the East India Company in 18
th
and 19
th
centuries.During the early part of the 19
th
Century, ht volume of foreign trade was relatively small. Later on as the trade expanded, theneed for banks of the European type was felt and the government of the East India Company took interest in having its own bank. Thegovernment of Bengal took the initiative and the first presidency bank,the Bank of Calcutta (Bank of Bengal) was established in 180. In
1
 
1840, the Bank of Bombay and IN 1843, the Bank of Madras was alsoset up.These three banks also known as “Presidency Bank”. The PresidencyBanks had their branches in important trading centers but mostlylacked in uniformity in their operational policies. In 1899, theGovernment proposed to amalgamate these three banks in to one sothat it could also function as a Central Bank, but the PresidencyBanks did not favor the idea. However, the conditions obtainingduring world war period (1914-1918) emphasized the need for aunified banking institution, as a result of which the Imperial Bank wasset up in1921. The Imperial Bank of India acted like a Central bank and as a banker for other banks.The RBI (Reserve Bank of India) was established in 1935as the Central Bank of the Country. In 1949, the Banking Regulationact was passed and the RBI was nationalized and acquired extensiveregulatory powers over the commercial banks.In 1950, the Indian Banking system comprised of the RBI,the Imperial Bank of India, Cooperative banks, Exchange banks andIndian Joint Stock banks.2) Nationalization Stages:After Independence, in 1951, the All India Rural Credit survey,committee of Direction with Shri. A. D. Gorwala as Chairmanrecommended amalgamation of the Imperial Bank of India and tenothers banks into a newly established bank called the State Bank of 
2
 
India (SBI). The Government of India accepted the recommendationsof the committee and introduced the State Bank of India bill in theLok Sabha on 16
th
April 1955 and it was passed by Parliament and gotthe president’s assent on 8
th
May 1955. The Act came into force on 1
st
July 1955, and the Imperial Bank of India was nationalized in 1955 asthe State Bank of India.The main objective of establishing SBI by nationalizing the ImperialBank of India was “to extend banking facilities on a large scale moreparticularly in the rural and semi-urban areas and to diverse otherpublic purposes.”In 1959, the SBI (Subsidiary Bank) act was proposed andthe following eight state-associated banks were taken over by the SBIas its subsidiaries.Name of the BankSubsidiary with effect from1. State Bank of Hyderabad1
st
October 19592. State Bank of Bikaner1
st
January 19603. State Bank of Jaipur1
st
January 19604. State Bank of Saurashtra1
st
May 19605. State Bank of Patiala1
st
April 19606. State Bank of Mysore1
st
March 19607. State Bank of Indore1
st
January 19688
.
State Bank of Travancore1
st
January 1960
3

Activity (53)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Archit Mehrotra added this note
awesu m :)
chi005 liked this
madapana liked this
binit1488 liked this
Ankita Gandhi liked this
binit1488 liked this
binit1488 liked this
discover_mayank liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->