Indian Banking Sector

It is not by augmenting the capital of the country, but by commentary a greater part of that capital active and amentiferous than would otherwise be so, that the most judicious operations of cambering stop increase the industry of the country. -Adam Smith INTRODUCTION The banking system is the backbone to the nations economy. It provides the necessary funds for the nations growth and using. fixs revivify a pivotal role of not just judge deposits and deploying large amounts of public funds but also supplement such funds through credit creation. The lodgeing system had undergone a sea change globally as well as in India. With new players, increased regulation, new instruments, rapidly ever-changing technology, new opportunities and increased challenges the banking system is changing continuously for the better. And a look at the evolution of the Indian banking sector would suspensor understand the changing Indian banking landscape. EVOLUTION OF INDIAN BANKING The development of the structured banking system began in 1786 with the establishment of the General Bank of India as a joint stock company. Then came Bank of Hindustan and Bengal bank. Later east India company established three banks i.e. The bank of Bengal in 1809, The Bank of Bombay in 1840 and The bank of Madras in 1843.

They were know as Presidency banks as they were set up in the three presidencies that were the units of administrative jurisdiction in the country for East India company. During this period few privately owned banks also came up such as Allahabad Bank set up in Allahabad in 1865, Punjab National bank set up in Lahore in 1895 and Bank of India set up in 1906 in Bombay. In 1920 the presidency banks were amalgamated to form the new royal Bank. The Imperial bank functioned as the Central bank acting the functions of commercial banking, central banking and banker to the government prior to the establishment of the retain bank in 1935 according to the Reserve Bank of India Act... If you pauperism to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.