Banking System in India


The structure of banking in india comprises of the reserve bank of india, scheduled, non scheduled banks, commercial banks,regional riral banks and the co-operative banks. In the recent past ,private non banking finance companies (NBFC) also have been active in the financial system , and are being regulated by the RBI.


The origin of modern banking in india dates back to 1770 when the first joint –stock bnak,named the Hindustan bank,was started by the English agency house of Alexander &co,in Calcutta .The bank was ,however closed up in 1832.


The real growth of modern commercial banking began in the country when the government was awakened to the need for banks in 1806 with the establishment of the first presidency bank called the bank of Bengal, ,in Calcutta in that year.Then followed ,the establishment of two other presidency banks,the bank of Bombay in 1840 and the bank of madras in 1843 .these three presidency banks continued till 1920 .In 1921 they were amalgamated into the imperial bank of india, which became SBI after nationalization in 1955.


Since 1860 till the end of the nineteeth century,a number of Indian joint stock banks come into existence .for instance .the Allahabad bank was started at Allahabad in 1865, In 1875,the Allahabad bank of shimla was started. In 1889, another Indian bank called oudh commercial bank was establishment .In 1895, the famous Punjab national bank came into existence .

During  the boom period of 1906-13,thus was a mushroom growth of banks. Many prominent banks also came into existence during the period.These were the bank of india 1906,the canara bank1906,the bank of baroda 1908 ,and the central bank of india (1911)



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