Podcast Beta
Questions and Answers
When were joint stock banks introduced in India?
How many commercial banks were operating in India at the time of Independence in 1947?
What was the name of the bank created by merging the three presidency banks in 1921?
When did the government nationalize all 14 banks whose nation-wise deposits were greater than Rs. 50 crores?
Signup and view all the answers
What was the purpose of the policy of social control over banks?
Signup and view all the answers
Study Notes
- Modern banking in India began in the 18th century with English Agency Houses.
- Three presidency banks were established in the 19th century.
- Private and foreign banks entered the market after limited liability was introduced.
- Joint stock banks were introduced in the beginning of the 20th century.
- The three presidency banks were merged in 1921 to create Imperial Bank of India.
- The banking system was fairly well developed with over 600 commercial banks operating in the country at the time of Independence in 1947.
- The government nationalized Imperial Bank and transformed it into State Bank of India in 1955.
- The policy of social control over banks was announced to cause changes in the management and distribution of credit by commercial banks.
- In July 1969, the government nationalized all 14 banks whose nation-wise deposits were greater than Rs. 50 crores.
- The nationalization served to intensify the social objective of ensuring that financial intermediaries fully met the credit demands for productive purposes.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of the history of banking in India with this informative quiz. From the beginnings of modern banking in the 18th century to the nationalization of banks in the 20th century, this quiz covers the major milestones and changes in the Indian banking system. See how much you know about the establishment of presidency banks, the introduction of limited liability, the creation of the Imperial Bank of India, the nationalization of State Bank of India, and more. Use keywords such as Indian banking system
