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Banking in India

Banking History in India:
In India, Banking started about 200 years ago under British rule. As you know in the beginning of the 19th century 3 Banks started in India by East India Company (British). These 3 Banks are Bank of Bengal in 1809, Bank of Madras in 1843, and Bank of Bombay in 1840.

But later these 3 banks were merged into a new bank called 'Imperial Bank' which was merged with 'State Bank of India' in 1955. After a few years, in 1955, the Imperial Bank of India was also nationalized and its name was changed to the State Bank of India.

In 1959 AD eight regional banks were nationalized by forming the State Bank of India Act. These eight banks are currently called banks of State Bank of India. The names of these eight banks - State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Indore, State Bank of Mysore, State Bank of Travancore etc. There are about 15,000 branches in the country. But now some of SBI parts merge again with State Bank of India.
Nationalization of Reserve Bank of India was done in 1949 after independence.

Private and Cooperative Sector Banks :
Do you know Allahabad Bank was India's first private bank, so you can say Allahabad Bank is India's oldest private bank. After that Reserve Bank of India was established in 1935 and later Punjab National Bank, Bank of India, Canara Bank and Indian Bank were established.

In January 1993, Reserve Bank of India allowed 13 new domestic banks to start banking services. Among them are UTI (Now became Axis Bank), Indus India (Now became Indusind Bank), ICICI, Global Trust, HDFC and IDBI. About 1500 cooperative banks in the country are also involved in banking services. The banks of American, European and Asian countries along with native banks are also doing business by opening their branches in India. Their branches are limited to metros and major cities. A large network of rural banks has been spread in the country. These rural banks have a very important role in small-scale banking business in the country.

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