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  • Evolution & Growth of Banking System in India

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    Prasad Tara
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    The document summarizes the evolution and growth of banking in India over five phases from 1786 to the present. In the first phase prior to 1950, the General Bank of India was established as the first bank and the Reserve Bank of India was formed in 1935. The second phase from 1950-1968 focused on security and saw the passage of the Banking Regulation Act of 1949 and the transformation of the Imperial Bank of India into the State Bank of India. The third phase from 1968-1984 saw direct lending, poverty alleviation schemes, the establishment of RRBs and NABARD. The fourth phase from 1985-1990 consolidated branch expansion gains. The fifth and ongoing phase from 1991 onward saw the entry of foreign banks and the

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    The document summarizes the evolution and growth of banking in India over five phases from 1786 to the present. In the first phase prior to 1950, the General Bank of India was established as the first bank and the Reserve Bank of India was formed in 1935. The second phase from 1950-1968 focused on security and saw the passage of the Banking Regulation Act of 1949 and the transformation of the Imperial Bank of India into the State Bank of India. The third phase from 1968-1984 saw direct lending, poverty alleviation schemes, the establishment of RRBs and NABARD. The fourth phase from 1985-1990 consolidated branch expansion gains. The fifth and ongoing phase from 1991 onward saw the entry of foreign banks and the

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    290 views6 pages

    Evolution & Growth of Banking System in India

    Uploaded by

    Prasad Tara
    The document summarizes the evolution and growth of banking in India over five phases from 1786 to the present. In the first phase prior to 1950, the General Bank of India was established as the first bank and the Reserve Bank of India was formed in 1935. The second phase from 1950-1968 focused on security and saw the passage of the Banking Regulation Act of 1949 and the transformation of the Imperial Bank of India into the State Bank of India. The third phase from 1968-1984 saw direct lending, poverty alleviation schemes, the establishment of RRBs and NABARD. The fourth phase from 1985-1990 consolidated branch expansion gains. The fifth and ongoing phase from 1991 onward saw the entry of foreign banks and the

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Evolution & Growth of Banking

    System in India
    By
    Rita prusty
    1. Evolution Phase (prior to 1950)-
    • General bank of India 1786(first bank)
    • Reserve bank of India 1935
    • Slow growth and periodic failure
    • People mostly save in postal deposits
    • Role of commercial banks were confined to
    Communities' savings & Providing credit to
    selected & limited segments of the economy
    2. Foundation Phase(1950 - 1968)-
    • Strongly focused on security
    • Banking Regulation Act was passed in 1949 to conduct &
    control operations of the commercial banks in India
    • Transformation of Imperial Bank of India into SBI in 1956
    • Strengthening of the co-operative credit structure
    • Provision of long term finance to agriculture & Industry
    • December 1951- 566 banks
    • December 1968- 281 banks
    3. Expansion Phase(1968-1984)-
    • Direct Lending by banks
    • Poverty alleviation & employment generation
    schemes
    • RRBs in 1975, NABARD in 1982
    • 1982- 268 banks
    4. Consolidation phase(1985-1990)-

    • Consolidating the gains of branch expansion


    undertaken by banks
    • Prices of assets & liabilities were fixed by RBI
    5. Reformatory Phase(1991 onwards)-

    • Entry of Foreign Banks


    • Phone Banking and Net-Banking
    • Shelter from external macroeconomic shock
    • System became more convenient and swift

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