Search your Topic HERE....

October 10, 2016

Banking Awareness for IBPS PO VI and Clerks VI Exams in Simple Language - Lesson 1

Leave a Comment

sponsored links

Dear Gr8 Ambitionists, I am Krishna. All of you know how important the General Awareness (with special reference to Banking) or simply Banking Awarenes ssection for Competitive Exams. There may be many books, websites that provide knowledge of General Awareness, Banking & Economy but they always tend to make you more confused with so many technical words, excessive information and a lot of numbers.

So here, I will try to simplify these things for you. I will be sharing 2 to 3 lessons per day on Banking & Financial Awareness in simple English. I hope you will enjoy reading my posts and boost up your learning in a better way for upcoming IBPS Banking Exams. Your comments, complaints and suggestions are always welcome. Please use the comments section below to share your words. Thank you :)

In today's Banking Awareness lesson, we shall learn the basic concepts of Banking and History of Banking in India. Let's start with some basic definitions.

Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

Bank is a financial institution that undertakes the banking activity i.e., it accepts deposits and then lends the same to earn certain profit.

Banking Awareness for IBPS PO VI : History of Banking in India

Banking in India in the modern sense originated in last decades of the 18th century. Among the first banks were the bank of Hindustan, which was established in 1770 and liquidated in 1829-32.
The largest and oldest bank still in existence is the State Bank of India. It originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government; the other two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India, which was later became the State Bank of India (SBI) in 1955. For many years the presidency bank had acted as quasi-central banks, as did their successors, until the Reserve Bank of India (RBI) was established in the year 1935, under the Reserve Bank of India (RBI) Act, 1934.
In 1960, the State Bank of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called it's associate banks.
  1. State Bank of Bikaner
  2. State Bank of Hyderabad
  3. State Bank of Jaipur
  4. State Bank of Indore
  5. State Bank of Mysore
  6. State Bank of Patiala
  7. State Bank of Saurashtra
  8. State Bank of Travancore

Banking Awareness for IBPS PO VI : Nationalization in 1969 :

On 19th July 1969, the Indian government nationalized 14 major private banks (Commercial Banks).
  1. The Allahabad Bank
  2. The Bank of Baroda
  3. The Bank of India
  4. The Bank of Maharashtra
  5. The Canara Bank
  6. The Central Bank of India
  7. The Dena Bank
  8. The Indian Bank
  9. The Indian Overseas Bank
  10. The Punjab National Bank
  11. The Syndicate Bank
  12. The Union Bank of India
  13. The United Bank of India
  14. The United Commercial Bank
In 1980, 6 more private banks (Commercial Banks) were nationalized.
  1. The Andhra Bank
  2. The Corporation Bank
  3. The New Bank of India (merged with Punjab National Bank in 1993)
  4. The Oriental Bank of Commerce
  5. The Punjab and SIndh Bank
  6. The Vijaya Bank
Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of Nationalized Banks from 20 to 19.

Liberalization in the 1990's
In the early 1990's, the government embarked on a policy of liberalization, licensing a small number of private banks. These came to known as New Generation Techsavvy Banks and included Global Trust Bank, which later amalgamated with Oriental Bank of Commerce, UTI Bank (later renamed as Axis Bank), ICICI Bank & HDFC Bank.

That's all for now friends. In our next post on Banking Awareness for IBPS PO VI and Clerks VI, we shall learn about the Reserve Bank of India (RBI).

sponsored links

0 Responses:

Post a Comment

Related Posts Plugin for WordPress, Blogger...