Indian Banking- A Brief History and the First-Ever Events

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

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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

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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.