Indian Banking A Brief History and the First Ever Events

Banks have been playing an instrumental role in the economy of a country. Banks mobilize the savings of individuals and channelize it towards manufacturers and businessmen who then use it as per their business requirements. Individuals also have the benefit of keeping their money safe and also gain interest on it. Banks also aid in the creation of new capital, the sale of shares, debentures etc. apart from myriad other activities.

Banking in India actually started with the establishment of the Bank of Hindustan in 1770. The largest and the oldest bank (which is still in existence) is SBI which started with the name of Bank of Calcutta in 1806 and was renamed to Bank of Bengal in 1809. Coming to the modern era, an ordinance was passed to nationalize the 14 largest commercial banks with effect from the midnight of 19th Jul 1969. In 1980, a second round of nationalization of 6 more commercial banks happened. With the policy of liberalization taking place in 1990, some private banks were given the license to operate in the banking industry.
This was a brief history of the banking industry in India. As a bonus, we are giving you a quick glance at the first ever banking events in India.

Model Questions

1. Which is the First Universal Bank in India?
   ICICI Bank
2. Name the First Bank to sell Mutual Funds.
   State Bank of India
3. Which Bank was the First Issuer of Masala Bonds?
   HDFC Bank
4. Who was the First Governor of Reserve Bank?
   Osborne Smith
5. Which was the First Regional Rural Bank in India?
   Prathama Bank

We hope the above article will definitely help you in Static GK preparation. Moreover, it’s good to know the historical facts of the banking system you are going to be a part of.

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