This document summarizes trends in the Indian banking system since independence. It describes the pre-independence system consisting of many private banks. It then discusses the post-independence nationalization of banks in 1969 and the growth of specialized banking institutions between 1982-1990. Finally, it outlines the liberalization period from the 1990s featuring the entry of private banks and payment banks and increasing digitalization of banking.
This document summarizes trends in the Indian banking system since independence. It describes the pre-independence system consisting of many private banks. It then discusses the post-independence nationalization of banks in 1969 and the growth of specialized banking institutions between 1982-1990. Finally, it outlines the liberalization period from the 1990s featuring the entry of private banks and payment banks and increasing digitalization of banking.
This document summarizes trends in the Indian banking system since independence. It describes the pre-independence system consisting of many private banks. It then discusses the post-independence nationalization of banks in 1969 and the growth of specialized banking institutions between 1982-1990. Finally, it outlines the liberalization period from the 1990s featuring the entry of private banks and payment banks and increasing digitalization of banking.
Year & Semester : 3rd year, 5th sem. Under the guidance of : Bidya Nand Choudhary Roll no. : 63 Department : BBE Table Of Contents INDIAN BANKING SYSTEM
The Indian Banking System consists of commercial banks,
which may be public scheduled or non scheduled, private, regional, rural and cooperative banks. THE PRE INDEPENDENCE PHASE Almost 600 banks present in India before independence. First bank – Bank of Hindustan, in Calcutta,1770 – close down in 1832. India’s first commercial banks – Oudh Commercial Bank Banks of 19th century – Allahabad bank(1865) & Punjab National Bank(1894). Early to mid-1800s- Bank Of Bengal, Bank Of Madras, & Bank Of Bombay were merged – became Imperial Bank – later became The State Bank Of India THE POST INDEPENDENCE PHASE Same as before independence. 1969 – Govt. of India decided to nationalise the banks under the Banking Regulation Act,1949. Total 14 banks were nationalised. In 1975 Govt. of India recognised – several groups were financially excluded. 1982 – 90 created banking institution with specialised functioned. THE LPG ERA The Govt. invited private investor to invest in India. 10 private banks approved by RBI – HDFC, Axis Bank, ICICI, DCB, IndusInd Bank, etc. Early to mid 2000s – two others banks, Kotak Mahindra Bank (2001) & Yes Bank (2004), received their licenses. 2013-14 – IDFC & Bandhan Bank received their licences Foreign banks like HSBC and Bank of America set up branches in India. Payment Bank came into existence Banks began to digitalise. REASONS TO NATIONALISE BANKS IN INDIA
1. To energise Priority Sectors
2. A Neglected Agriculture sector 3. Expansion of branches 4. Mobilisation of Savings 5. Economic and political factors CONCLUSION o Over the years, Indian banks have transformed the country’s bleak financial landscape to feed its growing economy. Even today, there is no doubt that the Indian Banking System is what keeps the country’s economy afloat. REFERENCES https://jupyter.org/