SHORT NOTE ON BANKING SYSTEM IN INDIA.
Bank of Hindustan(1770):- First bank to be established in india.(Alexander & co.)
It is established by European management at Calcutta.
Outh Commercial Bank(1881):-First bank with limited liability managed by Indian.
Punjab national Bank (1894):- First purely Indian bank.
Bank of Bengal- 1806
Bank of Bombay:-1840
Bank of Madras:- 1843
Reserve Bank of India
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It is the central bank of india
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It was established on April 1, 1935 at Calcutta by Rbi Act 1934.
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It was created by recommendation of Hilton-young commission in 1926.
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Headquarter shifted from Calcutta to Mumbai in 1937.
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RBI working as Reserve Bank of Burma Until 1947.
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RBI working as Reserve Bank of Pakistan Until 1948.
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RBI Nationalized Under Public Ownership Act 1948.
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It was nationlise on Jan 1,1949.
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Banking regulation Act 1949 passed.
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RBI have 4 Local bodies , Mumbai , Kolkata, Chennai and New Delhi .
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Number of Governors - Governor ( Urjit R Patel ) + 4 Dy.Governors (BP Kanungo,[S S Mundra, N S Vishwanathan and Viral Acharya)
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Recently COO also introduced.(Rank of Deputy Governer).
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Governors and Dy.Governors appointed by Central Government for a period of not more than 5 years .
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Each local body consists 4 members and appointed by Central for 4 period of 4 years .
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Number of RBI Departments - 26
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Number of Regional Offices - 29
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Central Board of Directors conduct at least 6 meetings in a financial year .
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RBI staff college - Chennai
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The College of Agriculture RBI - Pune
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National Institute of Bank Management - Pune
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Institute for Development and Research in Banking Technology - Hyderabad
Functions of RBI :
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Bankers of The Banker .
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Banker of The Government.
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Issues of notes.(above 1 Rupee.)
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Provision of Agriculture and Industrial Credit.
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Control of Credit.
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Clearing House Functions.
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Custodian of Foreign Reserves.
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Promotion of An Efficient Financial System
Important Governors of RBI :
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First Governor - Sir Osborne Smith(1935-37)
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Second Governor - James Braid Taylor
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Third Governor - C. D. Deshmukh ( First Indian Governor 1948-49)
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15th Governor - Manmohan Singh
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23rd Governor - Raghuram Rajan
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Present & 24th Governor – Urjit R Patel.
STATE BANK OF INDIA
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Imperial bank of india was created in jan ,1921 by amalgamation of 3 presidency banks:-Bank of Bengal,Bank of Madras,Bank of Bombay .
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After nationalization in 1955, its name was changed to State bank of india.
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SBI is the biggest commercial bank in the PSB of India.
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Initially SBI has 7 subsidiaries. These are (state bank of saurashtra,state bank of indore,state bank of Bikaner & jaipur,state bank of hydrabad,state bank of mysore, state bank of Patiala,state bank of Travancore)
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state bank of saurashtra & state bank of indore merge with sbi in 2008 & 2009 respectively. Rest have merged with sbi on 1st April, 2017,
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Its headquarter is at Mumbai.
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SBI became one of the 50 largest banks in the world (balance sheet size of ₹33 trillion, 278,000 employees, 420 million customers, and more than 24,000 branches and 59,000 ATMs)
NATIONALIZATION OF BANK.
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A step towards social banking & more control over banks ,14 large commercial banks were nationalize on 19 july,1969 whose reserves more than 50 crore each.
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Later on april 15, 1980, those six private sector banks whose reserves were more than 200 crore were nationalized.
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On September , 1993 New bank of india was merged with PNB.
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Bharatiya Mahila Bank , India’s first bank exclusively for women (HQ New Delhi) inaugurated on 19th November,2013.
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Currently there are 21 Public Sector Bank in India.
SCHEDULED COMMERCIAL BANK.
All banks which are mentioned in the second schedule of RBI Act, 1934 are known as schedule banks .it is consists of five different groups.
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State bank of india .
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Nationalized Banks.
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Private Sector Banks.
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Foreign Banks.
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Regional Rural Banks.
OVER ALL STRUCTURE OF INDIAN BANKING SYSTEM
