Banking Sector in India

The first purely Indian bank was Punjab National bank (1894)

Reserve bank Of India

It is the Central Bank of the Country.

It was established on April 1, 1935 with a capital of Rs. 5 Crore.

It was nationalized on January 1, 1949 as Govt. acquired the private share holdings.

Functions

Issuing of Notes

Banker to the Government

Banker’s Bank

Controller of Credit

Custodian of Foreign Reserves

It formulates and administers the monetary policy.

It acts as the agent of the Government of India in respect to India’s membership of the IMF and the World Bank.

SBI

It was created in January, 1921 by amalgamation of 3 presidency banks and named Imperial Bank of India.

After nationalization in 1955, its name was changed to state bank of India.

It is the biggest commercial bank in the public sector in India.

It has the largest number of branches (more than 13,000) in the world.

State SBI has 6 subsidiaries.

Nationalization of Banks

In order to have more control over the banks, 14 large commercial banks whose reserves were more than Rs 50 Crore each, were nationalized on July 19, 1969. The banks were:

The Central bank of India

Bank of India

Punjab national Bank

Canara Bank

United Commercial Bank

Syndicate bank

Bank of Baroda

United Bank of India

Union bank of India

Dena Bank

Allahabad Bank

Indian Bank

Indian Overseas Bank

Bank of Maharashtra

On April 15, 1980, those 6 private sector banks whose reserves were more than Rs. 200 Crore each were nationalized. These banks were:

Andhra Bank

Punjab & Sindh Bank

New Bank of India

Vijaya Bank

Corporation Bank

Oriental Bank of Commerce

In September 1993, The New Bank of India was merged with the Punjab National Bank.

These nationalized banks, together with Regional Rural Banks (RRBs), come under the category of Public sector Commercial Banks.

At present there are 19 nationalized banks besides the RBI.

Insurance

Established: September 1, 1956

Head Office: Mumbai

Zonal Offices: 7 (Mumbai, Kolkata, Delhi, Chennai, Kanpur, Hyderabad and Bhopal)

Securities & Exchange Board of India (SEBI)

It was established in April, 1988, and awarded statutory status by an Art of Parliament in 1992.

It is the regulatory authority of stock exchanges and protects investors from fraudulent dealings.