Important Landmarks in Banking History

Important Dates in Banking History of India

Timeline of Banking in India
1770 First bank was established at Cacutta under European Management.
1786 General Bank of India was set up.
2 June 1806 Bank of Calcutta was established in 1806; it was renamed in 1809 as Bank of Bengal
15 April 1840 Bank of Bombay established
1 July 1843 Bank of Madras established
1861 Paper Currency Act was enacted by British Government of India
1863 Oldest Joint Stock bank of India named Bank of Upper India was established.
1865 Allahabad Bank was established.
1881 Oudh Commercial Bank, the first Bank of India with Limited Liability to be managed by Indian Board was established at Faizabad
1895 Punjab National Bank was established. It was first bank purely managed by Indians.
1911 Central Bank of India, first Indian commercial bank which was wholly owned and managed by Indians, was established. It was called First Truly Swadeshi bank
1921 Three presidency banks viz. Bank of Calcutta, Bank of Bombay and Bank of Madras amalgamated to form Imperial Bank of India
1935 Creation of Reserve bank of India
1949 (January ) Nationalization of Reserve Bank of India
1949 (March) Enactment of Banking Regulation Act
1955 Nationalization of Imperial Bank of India, which now became State Bank of India
1959 Nationalization of SBI Subsidiaries
1969 Nationalization of 14 major Banks
1971 Creation of Credit Guarantee Corporation
1975 Creation of Regional Rural Banks
1980 Nationalization of 7 more banks with deposits over Rs. 200 Crore

Dates of Establishment of various Banks

Year / Date Bank
1786 General Bank of India (First bank established in India)
1790 Bank Of Hindustan which lasted until. 1832.
1839 Union Bank
02 June 1806 Bank of Calcutta
15th April 1840 Bank of Bombay
01st July 1843 Bank of Madras
1863 Bank of Upper India
1865 Allahabad Bank
1881 Oudh Commercial Bank
19th May 1894 Punjab National Bank
1895 Punjab National Bank In Lahore
1904 City Union Bank
1906 Bank of India
12-Mar-06 Corporation Bank
15th August 1907 Indian Bank
1908 Bank of Baroda
01st July 1906 Canara Hindu Permanent Fund (Renamed as Canara Bank in 1910)
21st December 1911 Central Bank of India
1916 Karur Vysya Bank
11-Nov-19 Union Bank of India
26th November 1920 Catholic Syrian Bank
1921 Imperial Bank of India by merger of three presidency banks.
11th May 1921 Tamilnad Mercantile Bank Limited
1923 Andhra Bank
1924 Karnataka Bank Limited
1925 Syndicate Bank
1926 Lakshmi Vilas Bank Limited
1927 Dhanlaxmi Bank Ltd
1929 South Indian Bank Limited
23rd October, 1931 Vijaya Bank
1934 Reserve Bank of India
16th Sept 1935 Bank of Maharashtra
1937 Indian Overseas Bank
1938 Jammu & Kashmir Bank
26th May 1938 Dena Bank
19th February 1943 Oriental Bank of Commerce
1943 UCO Bank
1943 United Bank of India
1945 Federal Bank Limited
1954 Nainital Bank Limited
1955 State Bank of India (Imperial Bank of India renamed as SBI)
1985 Kotak Mahindra Bank
1994 UTI Bank (Now Axis Bank)
Aug-94 HDFC Bank
1996 ICICI Bank
2003 Yes Bank
2013 Bhartiya Mahila Bank

Key Landmarks in the journey of RBI

  • In 1926, the Royal Commission on Indian Currency and Finance recommended creation of a central bank for India.
  • In 1927, a bill to give effect to the above recommendation was introduced in the Legislative Assembly, but was later withdrawn due to lack of agreement among various sections of people.
  • In 1933, the White Paper on Indian Constitutional Reforms recommended the creation of a Reserve Bank. A fresh bill was introduced in the Legislative Assembly.
  • In 1934, the Bill was passed and received the Governor General’s assent
  • In 1935, Reserve Bank commenced operations as India’s central bank on April 1 as a private shareholders’ bank with a paid up capital of rupees five crore.
  • In 1942 Reserve Bank ceased to be the currency issuing authority of Burma (now Myanmar).
  • In 1947, Reserve Bank stopped acting as banker to the Government of Burma.
  • In 1948, Reserve Bank stopped rendering central banking services to Pakistan.
  • In 1949, the Government of India nationalized the Reserve Bank under the Reserve Bank (Transfer of Public Ownership) Act, 1948.
  • In 1949, Banking Regulation Act was enacted.
  • In 1951, India embarked in the Planning Era.
  • In 1966, the Cooperative Banks came within the regulations of the RBI.
  • In 1966, Rupee was devaluated for the first time.
  • In 1969, Nationalization of 14 Banks was a Turning point in the history of Indian Banking.
  • In 1973, the Foreign Exchange Regulation act was amended and exchange control was strengthened.
  • In 1974, the Priority Sector Advance Targets started getting fixed.
  • In 1975, Regional Rural Banks started
  • In 1985, the Sukhamoy Chakravarty and Vaghul Committee reports embarked the era of Financial Market Reforms in India.
  • In 1991, India came under the Balance of Payment crisis and RBI pledged Gold to shore up reserves. Rupee was devaluated.
  • In 1991-92, Economic Reforms started in India.
  • In 1993, Exchange Rate became Market determined.
  • In 1994, Board for Financial Supervision was set up.
  • In 1997, the regulation of the Non Banking Financial Companies (NBFC) got strengthened.
  • In 1998, Multiple Indicator Approach for monetary policy was adopted for the first time.
  • In 2000, the Foreign Exchange Management Act (FEMA) replaced the erstwhile FERA.
  • In 2002, The Clearing Corporation of India Ltd Started operation.
  • In 2003, Fiscal Responsibility and Budget Management Act (FRBMA) enacted.
  • In 2004, Liquidity Adjustment Facility (LAF) started working fully.
  • In 2004, Market Stabilization Scheme (MSS) was launched.
  • In 2004 Real Time Gross Settlement (RTGS) started working.
  • In 2006, Reserve Bank of India was empowered to regulate the money, forex, G-Sec and Gold related security markets.
  • In 2007, Reserve bank of India was empowered to regulate the Payment systems.