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.
Banking in India actually started with the establishment of the 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 19th Jul 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.
| First-Ever Event | Bank |
| 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 |
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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