• General bank of India – 1786.• Other banks – Bank of Bengal (1809) - Bank of Bombay (1840) - Bank of Madras (1843), were setup as independent units and called it as “PRESIDENCY BANKS”.• The presidency banks were amalgamated in 1920 to form “Imperial bank of India”.
• Between 1906 – 1930, Bank of India, Bank of Baroda, Canara bank, Bank of Mysore and Central bank of India were setup.• RESERVER BANK OF INDIA was established in 1935, as the central banking authority of India, to supervise the functioning of Banks.
• Nationalization of Banks, mainly reforms were introduced in the Banking sector after Independence.
• 1949 enactment of banking regulation act was passed.• In 1955 the Indian government nationalized the imperial bank of India. The nationalization of imperial bank of India led to the organization of State Bank of India.• On 19th July 1969 fourteen major Banks and on 15 April 1980 another 6 Banks have been nationalized by Government of India .
• It was the effort of the then prime minister of India, Mrs. Indira Gandhi, that 14 major commercial banks in the country were nationalized.• Banking in the sunshine of the government ownership gave the public implicit faith and immense confidence about the sustainability of the financial institutions.
• In 1991, Narashima committee was setup to work for the liberalization for the Banking practices, this opened the doors to the foreign Banks and ATM stations.• Phone banking and net banking is introduced.• The entire system became more swift and convenient and time is given more importance than money.
ROLE OF RESERVE BANK OF INDIA:• Monitory authority of India.• Note issuing authority.• Banker’s to the bank.• Credit control.• Protecting the foreign exchange result.• Issue guidelines to all the banks.• Controls the volume of money in the country,