1.Bank’s Short Summary

1. Bank’s Short Summary

  A.       BANKS HISTORY:

 1770  -           BANK OF HINDUSTAN         -           by Alexander and Company

 1806  -           BANK OF KOLKATA             -           1^st Presidency Bank

 1823  -           Bank of Bengal

 1839  -           Banks were permitted to open new branches.

1840  -           BANK OF BOMBAY                -           2^nd Presidency Bank

 1843 –           BANK OF MADRAS                -           3^rd Presidency Bank

 The above three presidency has received authority to print Currency, but due to their failure hence the authority was revoked by the British India Government in 1862.

 1865  -           Allahabad Bank & Alliance Bank of Shimla

 1881  -           Avadh Commercial Bank 

 1894  -           Punjab National Bank – First Fully Indian Ownership Bank

By Mr. Lala Harkishan’s effort.

 1906 to 1913  - 18 banks were established which listed in below mentioned table.

 1913 to 1917 – 18 Banks were winded up

 1921  -           IMPERIAL BANK was established by merger of Three Presidency Bank 

i.e. BANK OF KOLKATA + BANK OF BOMBAY+ BANK OF MADRS.

01.04.1935     -    Reserve Bank of India was established as Central Bank,

      The Reserve Bank of India Act, 1934 was enacted. 

01.0.1949 -   RESERVE BANK OF INDIA was declared and started working as a Nationalised Bank. 

01.07.1955 -  Imperial Bank was converted to Sate Bank of India 

19.07.1969     -           14 Banks were Nationalised                       

No	BANK NAME	Established
1	Indian Overseas Bank	10 Feb. 1937
2	Allahabad Bank	24 Apl.  1865
3	Punjab National Bank	19 May 1894
4	Canara Bank	01 Jul. 1906
5	Bank of India	07 Sep. 1906
6	Indian Bank	15 Aug. 1907
7	Bank of Baroda	20 July 1908
8	Central Bank of India	21 Dec. 1911
9	Union Bank of India	11 Nov. 1919
10	Syndicate Bank	1925
11	Dena Bank	26 May 1938
12	United Commercial Bank	06 Jan. 1943
13	United Bank of India	1950
14	Bank of Maharashtra	16 Sep. 1935

14.04.1980            -           6 Banks were Nationalised 

No	BANK NAME	Established
1	Andhra Bank	28 Nov. 1923
2	New Bank of India	1936
3	Oriental Bank of Commerce	19  Feb. 1943
4	Corporation Bank	12  Mar. 1906
5	Punjab And Sindh Bank	24  Jun. 1908
6	Vijaya Bank	23 Oct.  1931

 

PRIVATE BANKS:

No	BANK NAME	YEAR
1	City Union Bank                                                (Earlier Name  Kumbakonam Bank as Ltd Bank)	31 Oct. 1904
2	Karur Vysya Bank	01 Jul. 1916
3	CSB Bank -                                                                  Catholic Syrian Bank  (officially opened on 01.01.1921)	26 Nov. 1920
4	Tamilnad Mercantile Bank	11 May 1921
5	Nainital Bank	1922
6	Karnataka Bank	18 Feb. 1924
7	Dhanlaxmi Bank	14 Nov 1927
8	South Indian Bank	29 Jan 1929
9	DCB Bank - Development Credit Bank Ltd.	1930
10	Federal Bank	23 Apl. 1931
11	Jammu & Kashmir Bank	01 Oct. 1938
12	RBL Bank	06 Aug. 1943
13	Induslnd Bank	17 Apl. 1964
14	IDBI - Industrial Development Bank of India	01 Jul.  1964
15	Axis Bank	03 Dec. 1993
16	HDFC-The Housing Development Finance Corporation	1994
17	ICICI Bank                                                     Industrial Credit and Investment Corporation of India	05 Jan. 1994
18	Kotak Mahindra Bank	21 Nov 1985
19	Yes Bank - Youth Enterprise Scheme Bank	2004
20	IDFC First Bank - Infrastructure Development Finance Company	01 Oct. 2015
21	Bandhan Bank	23 Aug. 2015

 

MERGER OF BANKS :

BANKS		MERGED INTO
State Bank of Bikaner & Jaipur          (01 Apl. 2017)		STATE BANK OF INDIA
State Bank of Hyderabad                     (01 Apl. 2017)
State Bank of Mysore                            (01 Apl. 2017)
State Bank of Patiala                             (01 Apl. 2017)
State Bank of Travancore                    (01 Apl. 2017)
Bharatiya Mahila Bank                         (01 Apl. 2017)
Dena Bank                                                (01 Apl. 2019)		BANK OF BARODA
Vijaya Bank                                              (01 Apl. 2019)
Andhra Bank                                          (04 Mar. 2020)		UNION BANK OF INDIA
Corporation Bank                                 (04 Mar. 2020)
Oriental Bank of Commerce             (01 April 2020)		PUNJAB NATIONA BANK
United Bank of India                           (01 April 2020)
Syndicate Bank                                     (01 April 2020)		CANARA BANK
Allahabad Bank                                       (01 Apl. 2020)		INDIAN BANK

 

CURRENT NATIONALISED BANKS: TOTAL 12 BANKS

No	Bank Names
1	State Bank of India
2	Punjab National Bank
3	Bank of Baroda
4	Canara Bank
5	Union Bank of India
6	Bank Of India
7	Indian Bank
8	Central Bank of India
9	Indian Overseas Bank
10	UCO Bank
11	Bank OF Maharashtra
12	Punjab and Sindh Bank.

           

B.         LEAD BANKS AS PER DISTRICT WISE: 

       1.     STATE BANK OF INDIA :

  Beed, Nanded, Osmanabad, Latur, Parbhani, Hingoli, Washim, Nandurbar. 

         2.     CENTRAL BANK OF INDIA :

                 Akola, Amravati, Dhule, Jalgaon, Yavatmal, Sambhajinargar, Buldahana.

         3.     BANK OF INDIA :

                 Nagpur, Bhandra, Chandrapur, Raigad, Ratnagiri, Solapur, Sangali, Wardha, Kolhapur,             Sindhudurg, Gadchiroli, Gondia, Mumbai, Suburbs of Mumbai. 

 4.     BANK OF MAHARSHTRA :

             Aurangabad, Nasik, Pune, Thane, Jalna, Palghar. 

But still on these banks “Bank of Maharashtra” is lead bank on this leading bank of each district.

 

C.        TYPES OF BANK :

      1.    PUBLIC SECTOR BANKS (PSBs):

These are nationalized banks that are owned and controlled by the government of India. They include banks like State Bank of India (SBI) and Punjab National Bank (PNB). PSBs play a significant role in the Indian banking sector and are focused on promoting financial inclusion and serving various sectors of the economy. 

      2.    PRIVATE SECTOR BANKS:

Private sector banks are owned and operated by private individuals or entities. They include both Indian private banks and foreign banks operating in India. Examples of private sector banks in India include HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. Private banks are known for their efficiency, innovation, and customer-centric approach. 

      3.    REGIONAL RURAL BANKS (RRBs):

          RRBs are banks established with the partnership of the central government, state governments, and sponsor banks (PSBs or private banks) to cater to the banking needs of rural areas. They provide banking and financial services in rural and semi-urban regions, with a specific focus on agriculture and rural development. 

       4.    COOPERATIVE BANKS:

         Cooperative banks are financial institutions that are owned and operated by their members, who are usually individuals or small businesses within a specific community or locality. They are regulated by the Reserve Bank of India (RBI) and operate on cooperative principles. Cooperative banks include urban cooperative banks and rural cooperative banks. 

        5.    FOREIGN BANKS:

Foreign banks are banks incorporated outside India that have established a presence in the country by setting up branches or subsidiaries. These banks are governed by the regulatory framework of both their home country and the Reserve Bank of India. Examples of foreign banks operating in India include Citibank, HSBC, Standard Chartered, and Deutsche Bank.

 6.    SMALL FINANCE BANKS:

         Small Finance Banks are a specialized category of banks that primarily serve the unserved and underserved sections of society. They provide basic banking services, microfinance, and financial inclusion services to small businesses, low-income households, and individuals in remote areas. Some examples of small finance banks in India are Equitas Small Finance Bank and Ujjivan Small Finance Bank.

Each type of bank has its own set of features, objectives, and target customer segments. Customers can choose a bank based on their specific banking needs, services offered, convenience, and reputation. It's advisable to research and compare the offerings of different banks before deciding on one that best suits individual requirements.

D.   SCHEDULED BANKS AND NON-SCHEDULED BANKS : 

      1.     Scheduled Banks:

         Scheduled Banks are those banks that are listed in the Second Schedule of the Reserve Bank of India Act, 1934. These banks are eligible for certain privileges and facilities from the RBI, such as access to refinance facilities, inclusion in the clearing system, and availability of funds from the RBI's repo window. Scheduled Banks are further classified into two categories :

a.     Scheduled Commercial Banks:

                 These banks primarily engage in commercial banking activities, including accepting deposits and providing loans and other banking services to the public. Examples of scheduled commercial banks in India include State Bank of India (SBI), HDFC Bank, ICICI Bank, and Punjab National Bank.

 b.     Scheduled Cooperative Banks:

    These are cooperative banks that are classified as scheduled banks based on their size, financial soundness, and fulfillment of certain criteria. Cooperative banks are financial institutions that are owned and operated by their members, who are typically from the same community or locality. Examples of scheduled cooperative banks in India include The National Cooperative Bank Ltd., Saraswat Cooperative Bank, and The Gujarat State Cooperative Bank.

 2.     Non-Scheduled Banks: 

Non-Scheduled Banks are those banks that are not included in the Second Schedule of the Reserve Bank of India Act, 1934. These banks do not enjoy the same privileges and facilities as scheduled banks. Non-Scheduled Banks are typically smaller financial institutions that may have a limited presence or operate in specialized areas. They are not subject to the same regulatory requirements as scheduled banks. Non-Scheduled Banks may include local area banks, small finance banks, or niche banks that focus on specific segments or regions

 

E.        ESTABLISMENT OF RBI BANK :

The Reserve Bank of India (RBI) is the central banking institution of India. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI plays a crucial role in India's monetary policy formulation, regulation of the country's banking sector, and maintenance of financial stability.

KEY ROLE OF RBI :

1.        MONETARY POLICY:

The RBI is responsible for formulating and implementing monetary policy in India. It aims to maintain price stability and ensure adequate credit flow to support economic growth. The Monetary Policy Committee (MPC), constituted by the RBI, decides the key policy rates such as the repo rate, reverse repo rate, and bank rate.

2.        CURRENCY ISSUANCE:

The RBI has the sole authority to issue currency notes in India. It issues and manages the Indian rupee (INR) to ensure an adequate supply of currency for the economy.

3.        BANKING REGULATION AND SUPERVISION:

The RBI regulates and supervises banks and financial institutions operating in India. It grants licenses to banks, sets prudential norms, and monitors their performance to maintain the stability of the banking system.

4.        FOREIGN EXCHANGE MANAGEMENT:

The RBI manages the country's foreign exchange reserves and formulates policies related to foreign exchange transactions. It aims to maintain stability in the foreign exchange market and ensure orderly development and functioning of the foreign exchange market in India. Banks rely on the RBI for foreign exchange transactions. The RBI manages and controls foreign exchange reserves, and banks need to adhere to RBI guidelines when dealing with foreign exchange transactions.

5.         DEVELOPMENTAL FUNCTIONS:

The RBI undertakes various developmental functions to promote a sound financial system in the country. It works towards enhancing financial inclusion, promoting digital payments, and fostering a secure and efficient payment and settlement system.

6.        BANKER TO THE GOVERNMENT:

The RBI acts as the banker, agent, and advisor to the central and state governments. It manages the government's banking transactions, issues government securities, and provides banking services to government departments.

7.        RESEARCH AND DATA COLLECTION:

The RBI conducts research and collects data on various aspects of the economy and financial markets. It publishes reports and bulletins that provide insights into economic and financial developments in India.

8.        FINANCIAL STABILITY:

The RBI plays a crucial role in maintaining overall financial stability in the country. It monitors and takes measures to mitigate risks in the financial system, including banking sector reforms and the resolution of distressed asset. 

9.        LENDER OF LAST RESORT:

The RBI functions as the lender of last resort for commercial banks. When banks face liquidity shortages and cannot borrow from other sources, they can turn to the RBI for emergency funding through the repo (repurchase) window. 

10.      CLEARING AND SETTLEMENT:

The RBI operates various payment and settlement systems that facilitate the clearing and settlement of interbank transactions. This includes the Real-Time Gross Settlement (RTGS) system for large-value transactions and the National Electronic Funds Transfer (NEFT) system for retail transactions. 

11.      MAINTENANCE OF CASH RESERVES:

Commercial banks are required to maintain a certain percentage of their deposits as cash reserves with the RBI. These reserves, known as the Cash Reserve Ratio (CRR), help the RBI control the money supply and manage liquidity in the banking system. 

12.      BANKER'S BANK:

The RBI performs the role of a banker's bank, providing banking services to other banks. It maintains accounts for banks, processes their transactions, and facilitates fund transfers between banks. 

13.      POLICY GUIDANCE AND SUPPORT:

The RBI provides policy guidance and support to banks. It issues guidelines, circulars, and directives to ensure compliance with banking regulations and to promote best practices in areas such as risk management, corporate governance, and customer service