Introduction:
Public Sector Banks (PSB) are banks where the majority share, i.e., 51% or more, is held by the Government. As of now, after the merger, there are 12 Public Sector Banks in India. The History of modern banking in India started in 1955 when the Imperial Bank of India was transformed into the State Bank of India. This was the first time that the Central Government entered into the banking business. Seven other state banks became the subsidiaries to State Bank of India, with the passing of State Bank of India Subsidiaries Banks Act in 1959. In 1969, 14 major banks with deposits of more than Rs.50 crores were nationalized and in 1980 the Government took over six other commercial banks. re, i.e., 51% or more, is held by the Government. As of, after a merger, there are 12 Public Sector Banks in India. History of modern banking in India started in 1955 when the Imperial Bank of India was transformed into the te Bank of India. This was the first time that the Central government entered into the banking business. Seven other te banks became the subsidiaries to State Bank of India, h the passing of State Bank of India Subsidiaries Banks in 1959. In 1969, 14 major banks with deposits of more n Rs.50 crores were nationalized and in 1980 the government took over six other commercial banks.
The indigenous banks, prior to nationalization, we're unable to meet the demands of the general public. They were mainly confined to big cities like Mumbai, Chennai, Kolkata, Kanpur, Delhi, etc. They were not able to cater to the demands of small farmers and small businessmen. They were only financing large corporate houses. In the 1930s, the Reserve Bank of India (RBI) suggested a few banking reforms and asked banks to follow accounting standards and submit periodical statements of their affairs. RBI also offered them privileges enjoyed by the scheduled banks.
This story is from the May 2020 edition of BANKING FINANCE.
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This story is from the May 2020 edition of BANKING FINANCE.
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