Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank:.
Banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Social Movement Impact
The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi Movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India
(POST INDEPENDENCE (Origin of Bureuacratic Administrative Phase- end of Laissez – faire)
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:
The Reserve Bank of India, India's central banking authority, was nationalized on January 1, 1949 under... [continues]
Cite This Essay
(2011, 08). Banking Sector – Phase and Trend of Growth. StudyMode.com. Retrieved 08, 2011, from http://www.studymode.com/essays/Banking-Sector-Phase-And-Trend-763374.html
"Banking Sector – Phase and Trend of Growth" StudyMode.com. 08 2011. 08 2011 <http://www.studymode.com/essays/Banking-Sector-Phase-And-Trend-763374.html>.
"Banking Sector – Phase and Trend of Growth." StudyMode.com. 08, 2011. Accessed 08, 2011. http://www.studymode.com/essays/Banking-Sector-Phase-And-Trend-763374.html.