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Historical Background Of Banking in India (in Hindi)

Lesson 3 of 7 • 60 upvotes • 14:59 mins

Vikas Kumar Singh Tomar

Banking System in India or the Indian Banking System can be segregated into three distinct phases: A. Early Phase of Indian Banks,from 1786 to 1969: The first bank, namely Bank of Bombay was established in 1720 in Bombay. Later on Bank of Hindustan was established in Calcutta in 1770. General Bank of India was established in 1786. Bank of Hindustan carried on the business till 1906. First Joint Stock Bank with limited liability established in India in 1881 was Oudh Commercial Bank Ltd. East India Company established the three independently functioning banks, also known by the name of “Three Presidency Banks” - The Banak of Bengal in 1806, The Bank of Bombay in 1840, and Bank of Madras in 1843. These three banks were amalgamated in 1921 and given a new name as Imperial Bank of India. After Independence, in 1955, the Imperial Bank of India was given the name "State Bank of India". It was established under State Bank of India Act, 1955. In the surcharged atmosphere of Swadeshi Movement, a number of private banks with Indian managements had been established by the businessmen from mid of the 19th century onwards, prominent among them being Punjab National Bank Ltd., Bank of India Ltd., Canara Bank Ltd, and Indian Bank Ltd. First bank with fully Indian management was Punjab National Bank Ltd. established on 19 May 1894, in Lahore (now in Pakistan).