History of Banking in India PDF Download: We provide you the information about the History of banking in India along with the history of banking system in India and History of banking in India pdf download. Before knowing about the banking system in India we will discuss the evolution and history of banking in India. This History of banking in India pdf and History of banking in India article speaks about the History of banking in India, history of banking pdf, banking of India, History of Banking in India pdf, banking history India, History of banking in India in Hindi, History of Banking in India pdf download, banking history in India, banking history for bank exams, banking history in India pdf, indian first bank in India, first bank in the India, bank of history, banking history upsc, banking evolution, history of bank, history of banks, evolution of banking, banking history in India in Hindi, History of Banking in India RBI. These topics relate to same subject which is history of banking in India but a little bit different in Names. The history of Banking in India in short can be seen before Independence and after independence. We provide all information about the banking system of India in the form history of banking in India pdf. The candidates can download this history of banking in India pdf for further reference. The history of banking in India pdf has been attached in this article and the aspirants appearing for all competitive exams found it to be more useful. The competitive exams are becoming tougher these days. As the number of aspirants applying for competitive exams has become high making the competitive exams tougher nowadays. Clearing a competitive exam becomes easy when you can clear the general knowledge section. Static GK revolves around the topic of history of banking in India. The candidates appearing for bank exams must know all the details about the banking system and the history of banking in India. Here we have explained in detail regarding History of Banking in India, banking history pdf, History of digital Banking in India, History of mobile Banking in India, history of banking system in India, History of Banking in India pdf, History of Bankers in India, banking history upsc, banking history in India pdf, Banking in India Before Independence, banking history mcq, banking history for bank exams, Banking in India After Independence, Nationalisation of Banks in India, First Bank of India, Top 10 Indian Bank, Banking System of India This History of Banking in India pdf article will be useful for all the candidates applying for banking exams. So Aspirants please concentrate on topics like History of banking in India, History of Banking in India pdf, History of Banking in India in Hindi, History of Banking in India Rbi so that you can get good marks in static GK topics. You can also download the History of Banking in india pdf which is attached to this History of Banking in India article for your reference in the future. 

Government Banks in India

 

History of Banking in India PDF Download Links

Click the below provided links to download the details of the History of Banking in India 2024. Candidates can make use of these PDFs for their upcoming bank exam preparation.

History Of Banking In India PDF Before Independence

History Of Banking In India PDF - After Nationalisation

History Of Banking In India PDF - Private Banks

 

History of Banking in India: Introduction About Banking

What is a Bank? 

Let's see a small introduction to banking. A bank is a financial sector that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Leading activities can be directly performed by the bank or indirectly through capital markets. Because bank plays a vital role in financial stability and the economy of a country, most jurisdictions exercise a high degree of regulation over banks. Thus, banks lower transaction costs and act as financial intermediaries as they bring savers and borrowers together. Along with making transactions much safer and easier, banks also play a key role in the creation of money. Banks are critical intermediaries in what is called the payment system, which helps the economy exchange goods and services for money or other financial assets. From this article get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi.

Foreign Banks in India

History of Banking in India

Banking in India forms the base for the economic development of the country. Major changes in the banking system and management have been seen over the years with the advancement in technology, considering the needs of people.

The Banking sector in India has seen a lot of transitions and changes over the centuries. It can be broadly categorized into 3 sub-parts that are:

1. Pre-Independence (Before 1947)

2. II Phase (1947 to 1991)

3. III Phase (1991 and beyond). 

From this article get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India RBI.

History of Banking in India Before Independence (1770 to 1947)

There were quite a few banks established during this time. The Banking System in India began with the establishment of the Bank of Hindustan in 1770 but it stopped operating by 1832. During this period, over 600 banks were established. However, very few were able to succeed. During the British rule in India, The East India Company established three banks: Bank of Bengal, Bank of Bombay, and Bank of Madras, and called them the Presidential Banks. These three banks were later merged into one single bank in 1921, which was called the “Imperial Bank of India.” The Imperial Bank of India was later nationalized in 1955 and was named The State Bank of India, which is currently the largest Public sector Bank. Given below is a list of other banks that were established during the Pre-Independence period along with the history of banking in India.

History of Banking in India Before Independence
Bank Name	Year of Establishment
Allahabad Bank	1865
Punjab National Bank	1894
Bank of India	1906
Central Bank of India	1911
Canara Bank	1906
Bank of Baroda	1908

 

The reasons why many major banks failed to survive during the pre-independence period, the following conclusions can be drawn:

• Indian account holders had become fraud-prone.

• Lack of machines and technology.

• Human errors & are time-consuming.

• Fewer facilities.

• Lack of proper management skills.

First Bank of India

The "Bank of Hindustan," which was founded in 1770 and had its headquarters in Calcutta, the then-capital of India, was the country's first bank. The agent of the Alexander and Company house established the first bank of India. It is currently nonexistent.

History of Banking in India After Independence (1947 to 1991)

Following the history of banking in India before independence which observed some major changes in the banking industry scenario and has to date developed a lot. Government – after Indian Independence, decided to nationalize the Banks because all the major banks were led privately which was a cause of concern as people in the rural areas still turned to money lenders for assistance. Also from this article get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi.

Nationalisation of Banks in India

Under the Banking Regulation Act, of 1949, the nationalisation of banks was done and the Reserve Bank of India was nationalized in 1949. Here we have provided the list of nationalisation of banks in India along with the history of banking in India for your reference. 

About Regional Rural Banks in India

 

History of Banking in India - Nationalisation of Banks in India
Nationalisation of Banks India List	Nationalisation Year
Allahabad Bank	1969
Bank of India
Bank of Baroda
Central Bank of India
Bank of Maharashtra
Canara Bank
Dena Bank
Indian Overseas Bank
Indian Bank
Punjab National Bank
Syndicate Bank
Union Bank of India
United Bank of India
UCO Bank
Andhra Bank	1980
Corporation Bank
New Bank of India
Oriental Bank of Commerce
Punjab & Sind Bank
Vijaya Bank
State Bank of Patiala	1959
State Bank of Hyderabad
State Bank of Bikaner & Jaipur
State Bank of Mysore
State Bank of Travancore
State Bank of Saurashtra

 

All these banks were later merged with the State Bank of India in 2017, except for the State Bank of Saurashtra, which was merged in 2008.  State Bank of Indore was merged in 2010. Also study about  History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi from this article.

 

Several reasons for nationalism in the banks of India are:

• Nationalism led to an increase in funds and thereby increased the economic condition of the country. 

• It increased efficiency. 

• It helped in boosting the rural and agricultural sectors of the country. 

• This opened up a major employment opportunity for the people. 

• The profit gained by Banks was used by the Government for the betterment of the people. 

• The competition was decreased and work efficiency increased.

The post-independence phase was the one that led to the major development of the banking sector in India.

History of Banking in India - Liberalization Period (1991 to date)

To provide stability and profitability to the Nationalised Public sector Banks, the Government decided to set up a committee under the leadership of Shri. M Narasimham to manage the various reforms in the Indian banking industry. The biggest development was the introduction of Private sector banks in India. RBI gave licenses to 10 Private sector banks to establish themselves in the country. Also get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi in this article. These banks included:

1. Global Trust Bank

2. ICICI Bank

3. HDFC Bank

4. Axis Bank

5. Bank of Punjab

6. IndusInd Bank

7. Centurion Bank

8. IDBI Bank

9. Times Bank

10.  Development Credit Bank

History of Banking in India - Indian Banking Structure

History of Banking in India - Banking System in India and Their Role:

The banking system in India is considered the backbone of a nation's economy. The main functions of the commercial banking system include borrowing to lend. To receive deposits and advance loans are the two main functions of all commercial banks. Other than these there are five other functions of commercial banks and they are acceptance of deposits. Banks mainly depend on the funds deposited with them by the public. Advancing loans is another function. Banks give loans to businessmen and firms usually for short periods only. Discounting bills of exchange or hundies is another important function. Banks transfer money from one place to another for their customers. The final properties of the banking system provide miscellaneous functions which include providing a locker, purchasing and selling of stocks, etc.

Components of the Banking System in India:

The banking system and history of banking in India are made up of the following sectors in India. The components of the banking system are given below. Also get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi from this article.

History of Banking in India - Reserve Bank of India (RBI):

The Reserve Bank of India (RBI) is the central bank of India. The RBI was originally set up as a private entity in 1935, but it was nationalized in 1949. The main purpose of the RBI is to conduct consolidated supervision of the financial sector in India, which is made up of commercial banks, financial institutions, and non-banking finance firms. The RBI formulates, implements, and monitors India’s monetary policy. The bank’s management objective is to maintain price stability and ensure that credit is flowing to productive economic sectors. The RBI also manages all foreign exchanges under the Foreign Exchange Management Act of 1999.

History of Banking in India - Scheduled Banks: 

Scheduled banks are those banks that are listed under Schedule II of the Reserve Bank of India Act, 1934. The bank's paid-up capital and raised funds must be at least Rs. 5 lakh to qualify as a scheduled bank. These banks are liable for low-interest loans from the RBI. They also have membership in clearinghouses. They also have numerous obligations to fulfill such as maintaining an average daily Cash Reserve Ratio with the central bank.

History of Banking in India - Unscheduled Banks:

Non-scheduled banks, by definition, are those that do not adhere to the RBI’s regulations. They are not mentioned in the Second Schedule of the RBI Act, 1934, and are therefore deemed incapable of serving and protecting depositors’ interests. Non-scheduled banks must also meet the cash reserve requirement, not with reserve banks, but with themselves. They are generally smaller in size and have a range of influence that is somewhat narrow. They are risky to do business with due to their financial limitations. The reserve capital of these banks is less than 5 lakh rupees.

History of Banking in India - Commercial banks:

The term commercial bank refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking. Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.

History of Banking in India - Public Sector Banks:

A public bank is a financial institution, in which a state, municipality, or public actors are the owners. It is an enterprise under government control. Public or 'state-owned' banks proliferated globally in the late 19th and early 20th centuries as vital agents of industrialization in capitalist and socialist countries alike; as late as 2012, state banks still owned and controlled up to 25 % of total global banking assets. Proponents of public banking argue that policymakers can create public-sector banks to reduce the costs of government services and infrastructure; protect and aid local banks; offer banking services to people and entities underserved by private-sector banking, and promote particular kinds of economic development reflecting polities’ shared notions of social good. A table of private sector banks is given below. Also get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi from this article.

Payment Bank of India

 

History of Banking in India
Public Sector Bank	Headquarters
Punjab National Bank ( Merged with Oriental Bank Of Commerce and United Bank Of India)	New Delhi
Indian Bank( Merged with Allahabad Bank)	Chennai
State Bank of India	Mumbai
Canara Bank( Merged with Syndicate Bank)	Bangalore
Union Bank of India( Merged with Andhra Bank and Corporation Bank)	Mumbai
Indian Overseas bank	Chennai
UCO Bank	Kolkata
Bank of Maharashtra	Pune
Punjab and Sind Bank	New Delhi
Bank of India	Mumbai
Central Bank of India	Mumbai
Bank of Baroda	Gujarat

 

History of Banking in India - Private sector Banks:

Private Sector Banks are those banks in which the majority of the stake is held by shareholders of the bank and not by the government. RBL Bank, HDFC Bank, ICICI Bank, Yes Bank, etc. are the private sector banks in India. They provide all the banking products and services to the customers. These products include Fixed Deposits, Savings Deposits, RD, Home Loans, Personal Loans, Car Loan, Locker, Demat Facilities, Debit/ Credit Card, ATM, Foreign Exchange Transactions, Insurance, Wealth Management, Net Banking, etc. Private banks are known for introducing information technology into the banking system. Also get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi from this article.

 

History of Banking in India - List of Private Sector Banks
Name of the Bank	Branches	Establishment	Headquarter
Axis Bank	4528	1993	Mumbai, Maharashtra
Bandhan Bank	670+	2015	Kolkata, West Bengal
CSB Bank	417	1920	Thrissur, Kerala
City Union Bank	700+	1904	Kumbakonam, Tamil Nadu
DCB Bank	334	1930	Mumbai, Maharashtra
Dhanlaxmi Bank	270+	1927	Thrissur City, Kerala
Federal Bank	1284	1931	Aluva, Kochi
HDFC Bank	5430	1994	Mumbai, Maharashtra
ICICI Bank	5288	1994	Mumbai, Maharashtra
IDBI Bank	1892	1964	Mumbai, Maharashtra
IDFC FIRST Bank	260	2015	Mumbai, Maharashtra
IndusInd Bank	2000	1994	Pune, Maharashtra
J&K Bank	1038	1938	Srinagar, Jammu, and Kashmir
Karnataka Bank	857	1924	Mangaluru, Karnataka
Karur Vysya Bank	779	1916	Karur, Tamil Nadu
Kotak Mahindra Bank	1500+	2003	Mumbai, Maharashtra
Nainital Bank	150	1922	Nainital, Uttarakhand
RBL Bank	398	1943	Mumbai, Maharashtra
South Indian Bank	876	1929	Thrissur, Kerala
Tamilnad Mercantile Bank	509	1921	Tuticorin, Tamilnadu
YES Bank	1000+	2004	Mumbai, Maharashtra

 

History of Banking in India - Foreign Banks:

Foreign Banks in India do make a share of 7% in the total Indian Banking Sector, giving a profit of 11% to the Indian economy, and there is only a 1% branch network of Foreign Banks in India, as they are mostly niche players by focusing more on trade finance, wholesale lending, external commercial borrowing, treasury service, and investment banking. These banks are under the regulation of the Reserve Bank of India, as RBI allows either the branch mode or wholly-owned subsidiary, and this Single Mode of Presence Banks are very less in India but manage their customers with good transactions giving good capital as guided by RBI regulations. There are 45 international/foreign banks in India. Also get to know about History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi from this article.

 

History of Banking in India - Foreign Banks
Foreign Sector Bank	Bank Website
AB Bank Limited	abbl.com
Abu Dhabi Commercial Bank Ltd.	adcbindia.com
American Express Banking Corp. (AEBC)	americanexpress.com/india/homepage.shtml
ANZ Banking Group Ltd.	anz.com
Bank of America N.A.	bankofamerica.com
Bank of Bahrain & Kuwait BSC	bbkonline.com
Barclays Bank Plc	barcap.com
BNP PARIBAS	bnpparibas.com
Citibank N.A.	citibank.co.in
Cooperative Rabobank U.A	rabobank.com/india
Credit Agricole Corporate And Investment Bank	ca-cib.com
Credit Suisse AG	credit-sussie.com/in /on/investment-banking
CTBC Bank Co Ltd	NA
DBS Bank India Ltd	dbs.com
Deutsche Bank AG	db.com
Doha Bank	dohabank.co.in
Emirates NBD Bank (P.J.S.C)	emiratesnbd.co.in
First Abu Dhabi Bank PJSC	bankfab.com/en-in
FirstRand Bank Ltd	firstrand.co.za
Industrial and Commercial Bank of China Ltd. (ICBC)	icbcindia.com
Industrial Bank Of Korea	NA
J P Morgan Chase Bank, N.A.	jpmorgan.com
JSC VTB Bank	vtb.com
KEB Hana Bank	NA
Kookmin Bank	kbstar.com
Krung Thai Bank Public Company LTD	ktb.co.th/th/content/others/foreign-location-detail
Mashreqbank psc	mashreqbank.com
Mizuho Bank Ltd.	mizuhocbk.co.jp/english
MUFG Bank Ltd	mufg.jp/english
National Australia Bank (NAB)	nationalaustraliabank.com nabindia/en/home
PT Bank Maybank Indonesia Tbk	NA
Qatar National Bank Q P S C.	qnb.com
Sberbank	NA
SBM Bank (India) Ltd.	sbmgroup.mu
Shinhan Bank	[email protected]
Societe Generale	societegenerale.in
Sonali Bank Ltd.	sbl.in
Standard Chartered Bank	standardchartered.com
Sumitomo Mitsui Banking Corporation	NA
The Bank of Nova Scotia	scotiabank.com
The Hong Kong & Shanghai Banking Corporation Ltd.	hsbc.co.in
The Royal Bank of Scotland N V	rbs.in
United Overseas Bank Limited	uobgroup.com
Westpac Banking Corporation	NA
Woori Bank	wooribank.com

 

History of Banking in India  - Regional Banks:

Regional Rural Banks are government-owned scheduled commercial banks of India that operate at the regional level in different states of India. These banks are under the ownership of the Ministry of Finance, Government of India. They were created to serve rural areas with basic banking and financial services. There are a total of 56 regional banks in India.

 

History of Banking in India - Co-operative Banks:

Co-operative banks are financial entities established on a cooperative basis and belonging to their members. This means that the customers of a cooperative bank are also its owners. These banks provide a wide range of regular banking and financial services. Also, these Cooperative Banks are regulated by the Reserve Bank of India and are governed by the Banking Regulation Act 1949, and Banking Laws Act 1955, and there are a total of 31 Cooperative Banks in India, which are individually under Government Firms to provide service to their employees.

 

History of Banking in India - Urban Co-operative Bank:

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. There are 1,531 urban cooperative banks (UCBs) and 97,006 rural cooperative banks, with the latter making up 65% of the total asset size of all cooperatives taken together.

 

History of Banking in India - State Co-operative Bank:

The state cooperative bank is a federation of the central cooperative bank and acts as custodian of the cooperative banking structure in the State. Its funds are obtained from the social capital, deposits, loans, and overdrafts of the Reserve Bank of India. So refer to the previous question paper to know the importance of the banking system in India. This article containing the history of banking in India will be useful for candidates to clarify their doubts regarding the banking system in India. Candidates who are willing to apply for the upcoming Government exams must ensure that they have proper notes and sufficient study material to prepare for the exam. The aspirants can history of banking in India pdf and a list of the banking system in India pdf as reference material. Do download the history of banking in India notes pdf for future reference.

History of Banking in India - Top 10 Indian Bank - as per the largest Market Capitalisation

The top 10 Indian banks by market capitalization for 2024 are shown below. There are 21 private sector banks and 12 public sector banks in India. In addition, the Indian financial system is supported by 45 international banks operating in the private sector.

• HDFC Bank

• State Bank of India

• ICICI Bank

• Axis Bank

• Kotak Mahindra Bank

• IndusInd Bank

• Yes Bank

• Punjab National Bank

• Bank of Baroda

• Bank of India

Thus we conclude this article but in this article, we have given all the necessary information regarding the topics like History of banking in India, History of Banking in India pdf, History of banking in India in Hindi, History of Banking in India Rbi. So aspirants study this article carefully and get good marks in Static GK sections.

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History of Banking in India - FAQs

Here we have given the common FAQs regarding the history of banking in India for your reference.

 

Q. Who is the father of Indian Baking?

A. Maidavolu Narasimham was an Indian banker who served as the 13th governor of RBI from May 2, 1977, to 30, November 1977. For his contribution, he is referred to as the father of Indian Banking.

 

Q. Who introduced Bank in India?

A. The Banking System in India began with the establishment of the Bank of Hindustan in 1770 but it stopped operating by 1832.

 

Q. Which is the first private bank in India?

A. The Nedungadi Bank was the first private sector bank in India, founded in 1899 by Rao Bahadur T.M.Appu Nedungadi in Kozhikode, Kerala.

 

Q. Which bank introduced ATM in India?

A. The first ATM in India was set up in 1987 by HSBC in Mumbai.

 

Q. Bank of India merged with?

A. Bank of India does not get merged with any other bank.

 

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