History of the Banking in India- How it all started

History of the Banking in India- How it all started

As per the current statistics, India is the fastest-growing nation not only in development but also in the growth of population, currently, India is a nation which has the faster growth of population and also the 2nd highest populated nation too.

Even though China stands the first in the list with the amount of population growth India is soon expected out to beat China in this list for sure.

And like few years before in India only educated people were using the banks for all the types of money related things while people in rural areas and some uneducated peoples still used the traditional methods for money transfer.

But later when the evolution of Banks started to arise out in India mainly over the evolution of banks started establishing out their branches in rural areas things started to change.

And after the recent implementation of bank account for everyone scheme by the government made a massive change which in result gave a big boost to the Banking Sectors

History of India Banking

Speaking about the History of banking in India, it all started out in the year of 1700 itself, actually, it was the period when British were actually ruling out India. And during that time a bank was formed with the Help of British People naming it out as the Bank of Hindustan.

And next bank started in the name of General Bank of India in the year of the 1790’s and eventually this bank fails within a few years.

As per the year of 2020, the banks which were like still in existence is the State Bank of India which is like the oldest Bank that is still in Existence.

Actually it was formed out as the Bank of Calcutta in the year of 1806 and then later in the year of 1809 it has been renamed out as the Bank of Bengal.

And during that period another two banks were formed out by the Presidency Government namely Bank of Bombay and Bank of Madras.

Later in the year of 1921, these three banks have been merged out to be known as the Imperial Bank of India. Finally, after the independence, these banks has been called as the State Bank of India from the year 1955.

Under the subsidiary banks act of 1959 State bank has formed like Eight Associated Banks under it.

Evolution of private banks sector

During the year of 1969 Indian Government has nationalized like 14 banks as the private sector banks and among them, the most important one in the list and famously known one during this era is Bank of Baroda.

And later when the years passed the no of the private sector has started to increase in huge numbers.

Read also Payscale of Bank Employees

Public Sector Banks

Though there has been lots of Private Sector has started to evolve still the Public Sector Banks stands out as the backbone of the Indian Banking Systems especially three banks namely State Bank, Canara Bank, Bank of Baroda were the ones playing an important in the field of banking.

Know About Commercial Banks vs Merchant Banks

Because they have most branches and the peoples account all over the country in large numbers. In simple these three banks has about 25-30% of the total banking system in India.

And this numbers itself will show you how much they are important in Indian Banking System.

Small Finance Banks

The evolution of the Small Finance Bank has started actually in the year of 2016 when RBI has given approval to them and they are most likely as the normal banks but not as large as them and the commonly known are AU Small Finance BankJana Bank are one among the ten small finance banks.

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Michael Clarke

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