India banking system Flashcards
What are the origins of modern banking in India?
The origins can be traced back to the late 18th century during the colonial period.
What was the first European-style bank in India?
The Bank of Hindustan was established in 1770 in Calcutta by Mayer’s Alexander and Company.
When did the Bank of Hindustan fail?
It failed in 1832.
What were some other early banks established in India?
The General Bank of India (1786–1791) and the Oudh Commercial Bank (1881–1958).
What were the Presidency Banks established by the East India Company?
The Bank of Bengal (1806), the Bank of Bombay (1840), and the Bank of Madras (1843).
What happened to the Presidency Banks in 1921?
They were merged to form the Imperial Bank of India.
What is the significance of the Imperial Bank of India?
It became the largest bank in the country at the time.
When was the Imperial Bank of India nationalized and renamed?
It was nationalized in 1955 and renamed the State Bank of India (SBI).
When was the Reserve Bank of India (RBI) established?
The RBI was established in 1935.
What was the initial status of the RBI?
It was initially set up as a private entity.
When was the RBI nationalized?
The RBI was nationalized in 1949.
What role did the RBI play in the banking sector?
It regulated the banking sector and managed the country’s monetary policy.
What significant event occurred in Indian banking in 1969?
The Indian government nationalized 14 major commercial banks.
What was the impact of bank nationalization in India?
It expanded banking services to rural areas and increased credit flow to agriculture and small-scale industries.
How many banks were nationalized in total by 1980?
A total of 20 banks were nationalized.
What measures did the RBI introduce during the nationalization phase?
The Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR).
What marked the beginning of the third phase of banking evolution in India?
The economic liberalization in 1991.
Who were the key figures behind the economic reforms in 1991?
Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.
What role did the Narasimham Committee play?
It shaped reforms aimed at liberalizing the economy and banking sector.
What new private banks were established during the liberalization phase?
ICICI Bank, HDFC Bank, and Axis Bank.
What technological advancements revolutionized banking in India?
The introduction of ATMs, internet banking, and mobile banking.
What is the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
A scheme launched in 2014 to expand financial inclusion by providing banking services to the unbanked population.
What does the evolution of banking in India reflect?
The journey from a colonial economy to a modern, liberalized, and technologically advanced financial system.
