Indian Banking- A Brief History and the First-Ever Events
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Banks have been playing an instrumental role in the economy of a country. Banks mobilize the savings of individuals and channelize it towards manufacturers and businessmen who then use it as per their business requirements. Individuals also have the benefit of keeping their money safe and also gain interest on it. Banks also aid in the creation of new capital, the sale of shares, debentures etc. apart from myriad other activities.

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Banking in India actually started with the establishment of Bank of Hindustan in 1770. The largest and the oldest bank (which is still in existence) is SBI which started with the name of Bank of Calcutta in 1806 and was renamed to Bank of Bengal in 1809. Coming to the modern era, an ordinance was passed to nationalize the 14 largest commercial banks with effect from the midnight of Jul 19, 1969. In 1980, a second round of nationalization of 6 more commercial banks happened. With the policy of liberalization taking place in 1990, some private banks were given the license to operate in the banking industry.
This was a brief history of the banking industry in India. As a bonus, we are giving you a quick glance at the first ever banking events in India.

Model Questions

  1. Which is the First Universal Bank in India?
    ICICI Bank
  2. Name the First Bank to sell Mutual Funds.
    State Bank of India
  3. Which Bank was the First Issuer of Masala Bonds?
    HDFC Bank
  4. Who was the First Governor of Reserve Bank?
    Osborne Smith
  5. Which was the First Regional Rural Bank in India?
    Prathama Bank

Download Free PDF- Indian Banking- A Brief History and the First-Ever Events

First-Ever EventBank
First Bank in India Bank of Hindustan (1770)
First Bank Managed by Indians Oudh Commercial Bank
First Bank with Indian Capital Punjab National Bank (Founder of the Bank is Lala Lajpat Rai)
First Foreign Bank in India HSBC
First Bank to get the ISO Certificate Canara Bank
First Indian Bank to open a Foreign Branch Bank of India
First Bank to Introduce ATM HSBC (1987, Mumbai)
Oldest Joint Stock Bank Allahabad Bank
First Universal Bank ICICI (Industrial Credit and Investment Corporation of India)
First Bank to introduce Saving Accounts Presidency Bank (1833)
First Bank to introduce the Cheque System Bengal Bank (1784)
First Bank to give the Internet Banking Facility ICICI
First Bank to Sell Mutual Funds State Bank of India
First Bank to Issue Credit Cards Central Bank of India
First Regional Rural Bank Prathama Bank (Sponsored by Syndicate Bank)
First Bank to get ‘In Principle’ Banking License IDFC and Bandhan Bank
First Bank to Introduce the Merchant Banking in India Grindlays Bank
First Bank to Introduce the Block Chain Technology ICICI
First Bank to Introduce Voice Biometric Citi Bank
First Bank to Introduce Robot in Banking Service HDFC

Download Free PDF- Indian Banking- A Brief History and the First-Ever Events

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We hope the above article will definitely help you in Static GK preparation. Moreover, it’s good to know the historical facts of the banking system you are going to be a part of.

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