1. HISTORY OF BANKING

2. Topic to be covered
• What is Banking?
• History of Banking?

3. THE TERM BANK
Italian word - banca
French word - banque
Bench or money exchange table
Jews in Lombardy, transacted their business
on benches in the market place

4. • According to Banking Regulation Act,
“Banking means the accepting for the
purpose of lending or investment of deposits
of money from the public, repayable on
demand or otherwise and withdrawable by
cheque, draft, and an order or otherwise”.
BANKING: Definition

5. • Oxford Dictionary defines a bank as "an
establishment for custody of money, which it
pays out on customer's order.“
BANKING: Definition

6. Financial institution
Deals with deposits and
advances
Receives money from those
who want to save and lends
money to those who need it
Ensure smooth money flow
to develop our economy
BANKING: Meaning

7. Evolution OF BANKING
Babylonians Aristotle Mohammedans 14th century
banking

8. EVOLUTION OF BANKING
1157
Bank of
Venice
1401 & 1407
Bank of
Barcelona and
the bank of
Genoa
1609
1690
Bank of Amsterdam
Bank of
Hamburg
1694
1833
Bank of England
Joint stock
commercial
banking

9. HISTORY OF BANKING IN INDIA
Phase I (1786 – 1969)
1786
• 1st Bank
• General Bank of
India
1809 - 1843
• Bank of Bengal
(1809)
• Bank of Bombay
(1840)
• Bank of Madras
(1843)
• Presidency Bank
1920
• Bank of Bengal +
Bank of Bombay +
Bank of Madras =
Imperial Bank

10. 1865 - ALLAHABAD BANK
1894 - PUNJAB NATIONAL BANK
1906 to 1913 - BoI, CBI, BoB, CB, IB & BoM
1935 - RESERVE BANK OF INDIA
1913 to 1948 - BANK FAILURES
1949 - BANKING COMPANIES ACT
BANKING REGULATION ACT
HISTORY OF BANKING IN INDIA
Phase I (1786 – 1969)

11. HISTORY OF BANKING IN INDIA
Phase II (1969-1991)
1955
Imperial Bank
1959
7 banks
owned by
princely state
1969
14
commercial
banks
1980
7 Banks

12. HISTORY OF BANKING IN INDIA
Phase III (1991- Till date)
M
Narasimham
committee
worked for
liberalization
of banking
Flooded with
foreign banks
and their
ATM stations
Introduction
of Phone
banking and
net banking
Digital
banking
Merger of SBI
and its
associates
and BMB (1ST
April 2017)