The document summarizes the evolution of banking in India over different phases: Phase I saw the slow growth of banks with the establishment of the first bank in India in 1786 and the Reserve Bank of India in 1935. Phase II brought nationalization of SBI and other banks in 1955-1960. Phase III saw further nationalization of 14 banks in 1969. Phase IV began banking reforms after 1991, allowing new private banks and more foreign investment and competition. Today, Indian banking utilizes modern technology and aims to further financial inclusion.

1. Presented by:-
Rakesh Babu-122
Rishav Dugar-128
Rishu Narsariya-130
Shinu Simon-147
Shruti Treasa-150
Sneha Bhudwar-158

3.  General Bank of India – 1st bank of India(1786)
 Reserve Bank of India -was established on 1 April 1935
during the British Raj in accordance with the provisions of
the Reserve Bank of India Act, 1934
 Slow growth and periodic failure
 In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) "to regulate,
control, and inspect the banks in India.”

4.  1955:-
Nationalization of Imperial Bank of India and
formation of State Bank of India.
 1960:-
Nationalization of SBI and subsidiaries
 1962:-
Deposit Insurance corporation was established
with aim to provide insurance cover to depositors,
thereby protecting deposits of common man.

5. 1969:-
‘Transitory period’- social banking and
nationalization(14 banks)

6.  The Government of India First 14 Nationalised banks:
1. Bank of India
2. Union Bank of India
3. Bank of Baroda
4. Bank of Maharashtra
5. Punjab National Bank
6. Indian Bank
7. Indian Overseas Bank
8. Central Bank of India
9. Canara Bank
10. Syndicate Bank
11. United Commercial Bank
12. Allahabad Bank
13. United Bank of India
14. Dena Bank

7.  Creation of credit guarantee Corporation
 Creation of regional Rural Banks(1975):-
The Govt of India set up Regional Rural Banks (RRBs) on
October 2, 1975.
The banks provide credit to the weaker sections of the rural
areas-small farmers, agricultural labourers, artisans and
small entrepreneurs.
Initially, five RRBs were set up on October 2,1975.
Capital share -50% by the central government, 15% by the
state government and 35% by the scheduled bank.
Total authorized capital- 1 crore which has since been
raised to 5 Crore.

8. 1980 :
 Nationalisation of seven banks with deposits over 200
crores.
1990 :-
 the nationalised banks grew at a pace of around 4%,
closer to the average growth rate of the Indian
economy.

9.  1991 :-
 the Indian rupee was devalued.
 The currency lost 18% relative to the us dollar.
 Narsimahmam Committee advised restructuring the
financial sector by a temporal reduced reserve ratio as well
as the statutory liquidity ratio.

10.  Licensing a small number of private banks(New
Generation tech-savvy banks) . eg :axis bank, Global
Trust Bank.
 This turning point should reinforce the market and
was often called neo liberal.
 all Foreign Direct Investment at that time was 10%
(at present it has gone up to 74% with some
restrictions).

11.  System become more convenient and swift.
 The country is flooded with foreign banks and their
ATM stations. Efforts are being put to give a
satisfactory service to customer. eg online banking.
 Time is given more importance than money.
 This move, along with the rapid growth in the
economy of India , revitalized the banking sector in
India

12.  Phase I
Slow growth rate
 Phase II
nationalization of 14 indian banks
 Phase III
the trend continues---7 more banks nationalized
no such significant changes with a constant growth
rate

13.  Phase IV
New phase of Indian Banking System with the advent
of Indian Financial & Banking Sector Reforms after
1991.

14.  Focus only on corporate clients
 Lack of skill expertise in retail and structured finance
 Lack of distribution system
 Limited use of technology
 Inefficient capital allocation
 Competition in market

15.  FDI in banking sector can solve various problems of
the overall banking sector. Such as
a) Innovative Financial Products.
b) Technical Developments in the Foreign Markets
c) Problem of Inefficient Management
d) Non-performing Assets
e) Financial Instability
f) Poor Capitalization
g) Changing Financial Market Conditions

16.  Technological Advancement
 Improving Risk Management
 Rural Banking
 Developing a flexible model for rapid scale--up at
optimal cost.

17.  Indian banking sector has 6th rank in all over the world
rank.
 SBI has 6500+ ATMs all over the country.
 ICICI bank has 3500+ ATMs all over the country.
 RBI had printed 6,39,948 lakhs crore notes till 6THNov
2008.
 SBI provides the facility and it is tie with 9200+ banks
to use their ATM.
 Transaction done through ATMs is around 70,000
crore in a year

18. Thank you…!!