First purely Indian Bank is Punjab National Bank. It is established in Lahore in 1894.
In 1860, the Government of India under the British rule passed Joint Capital Company Act under which Banks can be established under Limited Liability. Under this the first three banks were established. 1. Allahabad Bank (1865) - It is the Oldest Joint Stock Bank in India. 2. Alliance Bank of Shimla (1881). 3. Awadh Commercial Bank – It is the first entirely Indian Joint Stock Bank. It is established in 1881 in Faizabad.
The period between 1913 and 1917 is known as Banking Crisis because of World War-I.
The General Bank of India was begun in 1786.
Oudh Commercial Bank was established in 1786 in Faizabad (UP).
Inspired by the Swadeshi movement, banks were established between 1906 and 1911.
Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India are some of the banks established during the Swadeshi movement and have survived to the present.
In 1990 government gave licence for private banks. These came to be known as New Generation Banks.
The first new generation bank is Global Trust Bank (which later amalgamated with Oriental Bank of Commerce).
Banking Reforms was started in 1992-93 on the recommendations of Narasimham Committee.
Reserve Bank of India (Amendment) Act of 2006 was passed in June 2006.
The Banking Law (Amendment) Bill, 2012 was introduced to amend the Banking Regulation Act, 1949.
Mahila Bank
First Bharatiya Mahila Bank was begun in Mumbai (at November19, 2013). It is India's first total women bank. Headquarters is at New Delhi.
First Branch is at Mumbai.
First C.E.O is Usha Ananthasubramanian. The bank commences operations with an initial capital of Rs. 1000 cr.
Started function on 19 November 2013 on the occasion of the 96th birth anniversary of former Indian Prime Minister Indira Gandhi.
First branch in Kerala is Thiruvananthapuram.
First State to implement E-payment system of RBI is Karnataka.
First in India
ATM in India – HSBC
Internet Banking - ICICI BANK
Mutual Fund - Unit Trust of India (UTI)
Credit Card - Central Bank of India
Bank that got ISO - Canara Bank
Saving Bank - Presidency Bank in 1830
First Indian bank to open branch outside India - Bank of India (London in 1946)
First Regional Rural Bank named Prathama Gramin Bank was started by Syndicate Bank.
First Branches known as Presidency Banks is Calcutta, Bombay, Madras.
What is Statutory Ratio?
SLR refers to that portion of total deposits of a commercial bank which it has to keep with itself in the form of cash reserves. SLR is an effective instrument of credit control with Reserve Bank of India. By altering the SLR, the RBI manages the expansion and reduction of credit. If SLR is reduced, the lendable resource with the scheduled commercial banks gets correspondingly increased and vice-versa.
Public Sector Banks & Headquarters
Allahabad Bank - Kolkata
Andhra Bank - Hyderabad
Bank of Baroda - Vadodara
Bank of India - Mumbai
Canara Bank - Bangalore
Corporation Bank - Udupi
Central Bank of India - Mumbai
Dena Bank - Mumbai
Indian Bank - Chennai
Indian Overseas Bank - Chennai
Bank of Maharashtra - Pune
Oriental Bank of Commerce - Delhi
Punjab National Bank - New Delhi
Punjab & Sind Bank - Delhi
Syndicate Bank - Manipal, Karnataka
Union Bank of India - Mumbai
Vijaya Bank - Bengaluru
UCO Bank - Kolkata
United Bank of India - Kolkata
IDBI Bank Ltd - Mumbai
State Bank Group and Its earlier Associates
State Bank of India - Mumbai
State Bank of Bikaner & Jaipur - Jaipur
State Bank of Patiala - Patiala
State Bank of Hyderabad - Hyderabad
State Bank of Mysore - Bengaluru
State Bank of Travancore - Trivandrum
Nationalisation of Banks
First nationalisation of banks occured in July 19, 1969 and it was at the time of tenure of the then Prime Minister of India, Indira Gandhi. 14 banks were nationalised.
Second nationalisation was made on April 15, 1980. Six banks were nationalised.
On 4th September 1993, the New Bank of India was merged with the Punjab National Bank.
Providing banking credit to people living in rural area and it was the main goal of Nationalisation of banks.
Indira Gandhi was the then Prime Minister of country at the time of two nationalisation drives in 1969 and 1980.
The Nedungadi Bank was merged with Punjab National Bank in 2003.
Lord Krishna Bank was merged in 2006 with the Centurion Bank. Centurion Bank was merged with HDFC Bank.
Banking Ombudsman 2006
It was introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from June 14th 1995 for giving solution for customer's complaints.
The Banking Ombudsman is a superior administrator appointed by the Reserve Bank of India.
Fifteen Banking Ombudsmen have been appointed so far.
All Scheduled Commercial Banks, Scheduled Co-operative Banks and Regional Rural Banks come under the system.
The Reserve Bank of India
Headquarters is at Mumbai.
RBI was begun in 1st April 1935. It was nationalised on 1st January 1949.
RBI is the Central Bank of India.
First Governor of RBI is Sir Osborne Arkell Smith (1935-37).
First Indian Governor is C. D. Deshmukh (1943-49). He later became the Union Finance Minister. He was also became the representative of India at the IMF.
Bank rate, Open Market operations, SLR and CRR are the instruments of monetary Policy of RBI. Functions of RBI are issue of currency notes, Banker to the Government, Banker's bank, custodian of Foreign Exchange Reserves, to manage public debt, to stabilise the value of money, etc.
It is the member bank of the Asian Clearing Union.
The Reserve Bank of India has branch offices around the country at state capitals and other important major cities in India [18 cities].
Two training colleges for its officers are Reserve Bank Staff College at Chennai and College of Agricultural Banking at Pune.
Four Zonal Training Centres are Belapur, Chennai, Kolkata and New Delhi.
First RBI Governor to sign in Indian Rupee is James Taylor.
Longest term as RBI Governor is Benegal Rama Rau (1949-1951).
RBI Governor who later became Prime Minister is Manmohan Singh.
Symbol of RBI logo is Tiger, palm tree.
Reserve Bank of India reduced validity of cheques from 6 to 3 months on April 1, 2012. RBI was setup on the recommendations of Hilton Young Commission.
ATM for Non Banking Institutions
Non Banking Institutions approved by Reserve Bank (2007)
Tata Communication Payment Solutions
Prizm Payment Service
Muthoot Finance
Vakrangee Ltd
Commercial Banks
Commercial Banks are those revenue seeking establishment which takes deposits from general public and gave loans to people with the main aim of earning profit from interest, commission etc.
The operations of all these banks are regulated by Reserve Bank of India.
Commercial banks are classified into Scheduled and non-scheduled bank.
A scheduled bank is included in the second schedule of Banking Regulation Act, 1965.
Conditions to be included into a scheduled bank are, 1. It must have a capital and funds for an combined value of at least Rs. 5 lakhs. 2. It must satisfy the RBI that its affairs are not conducted in a manner detrimental to the interest of its depositors. 3. It should be a corporation and should not be a partnership or a single owner firm.
Scheduled Banks enjoy certain privileges such as free or concessional remittance and borrowing facilities from the RBI.
In return Schedule Banks must maintain an average daily balance of cash reserves with the RBI at rates stipulated by it and must submit periodical returns to the RBI.
Non Scheduled Banks must be statutory cash reserve requirement. But they are not required to keep them with the RBI, they can keep these balances with themselves.
They are not allowed to have a loan from RBI for normal banking purposes.
Scheduled Banks are categorized into public sector banks and private sectors banks.
ICICI Bank
It was founded in 1994.
It is headquartered in Mumbai.
India's largest private sector bank: ICICI
ICICI Bank is one among the Big Four banks of the country. The other banks are SBI, PNB and Bank of Baroda.
It is the second leading bank in the country with respect to assets and market capitalization.
First Indian Bank listed in New York Stock Exchange.
EXIM Bank
The Export Import Bank of India was founded in 1982.
Headquarters is at Mumbai.
It was set up for financing, facilitating and promoting foreign trade in India.
IDBI Bank
The Industrial Development Bank of India was established on July 1964.
Headquarters: Mumbai
Apex bank for industrial finance in India
In September 2004, RBI incorporated IDBI as a Scheduled Bank.
SIDBI
SIDBI is Small Industries Development Bank of India.
It is wholly owned subsidiary of IDBI.
Headquarters: Lucknow
SIDBI started its operation from 2nd April 1990.
It was established for promoting, financing, and assisting in development of industries in the small scale sector.
National Housing Bank (NHB)
The National Housing Bank is an Apex financial institution for housing. It was established as wholly owned associate of the Reserve Bank of India.
Headquarters: New Delhi
The bank started its operations from July 8 1988.
It is the Regulator and Supervisor of Housing Finance Companies (HFCs) in the country.
Main Activity: Extending financial assistance to eligible institutions in the housing sector by way of refinance and direct finance.
Regional Rural Banks
The Regional Rural Bank (RRBs) are Scheduled Banks sponsored by individual nationalised commercial banks.
First Regional Rural Bank was begun in 2nd October 1975.
First Regional Rural Bank in India is called Prathama Gramin Bank. It is sponsored by Syndicate Bank and was set up in 1975.
Main Objectives: Developing rural economy by providing credit and deposit facilities for agriculture and other productive activities of all kinds in rural areas.
Foreign Banks in India
HSBC, Standard Chartered Bank, Abu Dhabi Commercial Bank, American Express Bank, BNP Paribas, DBS Bank, Bank of America, Citibank, Deutsche Bank, UBS etc.
Largest Banking Group in the World is HSBC (The Hongkong and Shanghai Banking Corporation).
Largest Bank in terms of Capital Market is ICBC (Industrial and Commercial Bank of China).
The State Bank of India
It was established as Bank of Calcutta in 1806. It becomes Bank of Bengal in 1809.
In 1921, the three presidency Banks merged to form Imperial Bank of India. First Presidency Bank is Bengal Presidency Bank (1806).
In July 1, 1955, Imperial Bank was nationalised and named as State Bank of India.
Headquarters: Mumbai
SBI is the current leading public sector bank in India. It is the largest Commercial Bank in India with respect to branches. It is Worlds second largest bank in terms of branches. It has highest number of Branches in India.
It had seven associated banks. But on 13th August 2008, State Bank of Saurashtra and in 19th June 2009 State Bank of Indore were united with SBI. The remaining five subsidiary banks are merged with SBI in April 1, 2017. They are State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore
SBI was the first bank to introduce Core Banking system in India.
It is the first Indian Bank with branch in China.
First woman to be the Chairperson of State Bank of India (on October 7, 2013) is Arundhathi Bhattacharya.
SBI Sri Lanka, the oldest bank in Sri Lanka celebrated its 150th year in Sri Lanka on 1st July 2014.
Lead Bank Scheme
In Lead Bank Scheme, here bank adopts a district in the country for developmental purpose.
On the basis of the recommendations of Gadgil study group and Nariman Committee, the lead bank scheme was introduced in 1969.
Lead Bank of Trivandrum District is Indian Overseas Bank.
