Updated By: LatestGKGS Desk
Indian banking Industry
India's first bank was a bank of Hindustan in 1770.
India's first bank was a bank of Hindustan, which was set up in 1770.
The first bank of limited liability managed by Indians was Oudh Commercial Bank founded in 1881.
Punjab National Bank was established in 1894.
Swadeshi movement which began in 1906, encouraged the formation of a number of commercial banks.
Banking crisis during 1913 -1917 and failure of 588 banks in various States during the decade ended 1949 underlined the need for regulating and controlling commercial banks.
The Banking Companies Act, 1949. This act provided the legal framework for regulation of the banking system by RBI.
The largest bank -Imperial Bank of India was taken over by the RBI in 1955 and SBI followed by the 7 Associate banks in 1959.
At present, SBI has five associate banks.
With a view to bringing commercial banks into the mainstream of economic development with definite social obligation and objectives.
The government issued an ordinance on 19 July 1969 acquiring ownership and control of 14 major banks in the country.
Six more banks were nationalized from15 April 1980.
