Friends, this is the Lesson 2 of our Banking Awareness study fabric for upcoming RBI Grade B in addition to IBPS PO IV online exams. Please read the Introductory Lesson 1 from here earlier reading this.
The Reserve Bank of Bharat was nationalized inwards 1949 (Note : RBI was created inwards the twelvemonth 1935 in addition to nationalized inwards 1949, don’t hold upwards confused betwixt these 2 years inwards exams) in addition to playing a vital business office inwards monetary in addition to credit mechanism. The All Bharat Rural Credit Survey Committee (1954) suggested that past times statutory provision, the Imperial Bank of Bharat should hold upwards converted into State Bank of India, amongst the object of extending banking facilities inwards rural areas. Accepting the recommendations of the committee, the Govt. of Bharat enacted the State Bank of Bharat Act, 1955. Consequently on 1st July, 1955, the Imperial Bank of Bharat was nationalized in addition to inwards its place, the State Bank of Bharat was established. Thus, it was considered every bit a landmark inwards the history of commercial banking inwards India.
Subsequently amongst the passing of the State Bank of Bharat (Subsidiary Banks) Act, 1959, the State Bank of Bharat took over every bit its subsidiaries. The next are the subsidiary banks to SBI.
- State Bank of Bikaner
- State Bank of Hyderabad
- State Bank of Jaipur
- State Bank of Indore
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Saurashtra
- State Bank of Travancore
In 1963, the State Bank of Bikaner in addition to the State Bank of Jaipur were amalgamated into a unmarried banking concern in addition to it was named every bit the State Bank of Bikaner in addition to Jaipur. On 13th August 2008 the State Bank of Saurashtra merged amongst SBI, reducing the lay out of associate province banks from 7 to six. Then on 19th June 2009 the State Bank of Indore merged into SBI (this procedure completed inwards the twelvemonth 2010). Now SBI is planning to merge the remaining 5 subsidiary banks amongst itself every bit it prepares to fund the economy.
On 19th July 1969, fourteen major person sector commercial banks (with deposits of over fifty crores) were nationalized past times the Govt. of Bharat amongst a persuasion to serve the rural economic scheme past times expanding the branch network inwards rural areas. The names of thee banks are every bit nether :
- The Allahabad Bank
- The Bank of Baroda
- The Bank of India
- The Bank of Maharashtra
- The Canara Bank
- The Central Bank of India
- The Dena Bank
- The Indian Bank
- The Indian Overseas Bank
- The Punjab National Bank
- The Syndicate Bank
- The Union Bank of India
- The United Bank of India
- The United Commercial Bank
As a effect of nationalization, 85 per centum of the banking concern inwards price of deposits was brought nether populace control. On 15th Apr 1980, half-dozen to a greater extent than person sector commercial banks (with deposits of over Rs. 200 crores) were nationalized. They are :
- The Andhra Bank
- The Corporation Bank
- The New Bank of Bharat (merged amongst Punjab National Bank inwards 1993)
- The Oriental Bank of Commerce
- The Punjab in addition to SIndh Bank
- The Vijaya Bank
Thus, xx person sector commercial banks were nationalized in addition to over xc per centum of banking activeness inwards the dry reason was brought nether the populace sector in addition to it brought downwards the inequalities of income in addition to wealth in addition to to ensure greater social justice. In the twelvemonth 1985, the elevate of United Commercial Bank was changed every bit UCO Bank. On 19th Nov 2013 on the occasion of the 94th nativity anniversary of one-time Indian Prime Minister Indira Gandhi, the First women Bank of Bharat “Bharatiya Mahila Bank” was established.
Based on the recommendations of Narasimhan Committee (1975) report, the Govt. of Bharat began to established a lay out of Regional Rural Banks (RRB’s) from Oct 1975 in addition to onwards. At introduce at that topographic point are 56 RRB’s inwards India.
Entry of Private Sector Banks
By accepting the recommendations of Narasimhan Committee (1991), the Reserve Bank of Bharat permitted setting upwards of person banks inwards the country. UTI Bank is the get-go person sector commercial banking concern with its headquarters at Ahmedabad established on 2nd Apr 1994. Later, several other person banks similar Global Trust Bank (presently merged amongst a populace sector banking concern i.e., Oriental Bank of Commerce), HDFC Bank, ICICI Bank, Times Bank, IDBI Bank, Indus Indu Bank, Centurion Bank, Bank of Punjab etc were established. The determination of RBI to allow the person sector banks has evolved a mixed response. One major declaration inwards favour of this determination was that the allowing of person sector commercial banks volition strengthen the fiscal sector reforms. The major declaration against allowing of the person sector commercial banks was negating the spirit of the nationalization of person sector commercial banks inwards 1969 in addition to 1980.
That’s all for instantly friends. In our adjacent post nosotros shall hash out close the types of banks. Happy Reading 🙂