Banking – Some Important Facts

  • The first bank of limited liability managed by Indians was Oudh Commercial Bank founded in 1881.
  • Punjab National Bank (PNB) was established in 1894.
  • The Banking Companies Act was passed in February 1949, which was subsequently amended to read as Banking Regulation Act, 1949.
  • The largest bank – Imperial Bank of India – was nationalised in 1955 and rechristened as State Bank of India (SBI), followed by formation of its 7 Associate Banks in 1959.
  • The Government of India issued an ordinance on 19 July 1969 acquiring ownership and control of 14 major banks in the country. Six more commercial banks were nationalised from 15 April 1980.
  • A high-level Committee on the Financial System (CFS) was set up on 14 August 1991 to examine all aspects relating to the structure, organisation, functions and procedures of the financial systems. Based on the recommendations of the Committee (Chairman: Shri M.Narasimham), a comprehensive reform of the banking system was introduced in 1992-93.
  • In 1993, in recognition of the need to introduce greater competition, new private sector banks were allowed to be set up in the banking system. These new banks had to satisfy certain requirements. Further, revised guidelines for entry of new banks in private sector were issued on 3 January 2001.
  • The Reserve Bank of India (RBI) was established under the Reserve Bank of India Act, 1934 on 1 April 1935 and nationalised on 1 January 1949.
  • The Small Industries Development Bank of India (SIDBI) was established as a principal financial institution for the promotion, financing and development of industries in the small scale sector. SIDBI started its operations from 2 April 1990.
  • The Export Import Bank of India (EXIM Bank, set up in 1982 under the Export-Import Bank of India Act 1981) was established for financing, facilitating and promoting foreign trade in India.
  • The National Housing Bank (NHB), the apex institution of housing finance in India, was set up as wholly owned subsidiary of the Reserve Bank of India. The bank started its operations from July 1988.
  • The National Bank for Agriculture and Rural Development (NABARD) came into existence on 12 July 1982. It was established for providing credit for promotion of agriculture, small-scale industries, cottage and village industries, handicrafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas.
  • The Investment Commission was set up in December 2004 with a view to make the environment in India attractive for investors.
  • The Asian Development Bank (ADB), an international Partnership of 67 member (currently) countries, was established on 22 August 1966 with its headquarters at Manila, Philippines.




One response to this post.

  1. Posted by amit kumar on November 20, 2011 at 3:23 pm



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: