⁠History of Banking in India

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Here's a concise timeline of the history of Banking in India in 7 points.

1

Early Traces

Traders and merchants would extend credit, and there were systems for safekeeping valuables.

2

The First Banks

The Bank of Hindustan, established in 1770 in Calcutta, is considered the first bank.

3

Presidency Banks

The East India Company set up three presidency banks - the Bank of Bengal, the Bank of Bombay and the Bank of Madras are now known as the Bank  of India.

4

Reserve Bank of India

In 1935, the Reserve Bank of India (RBI) was established as the central bank, regulating the entire banking system in India.

5

Post Independence Banking

After India's independence in  1947, the government focused on strengthening the banking system to support economic development.

6

Nationalization of Banks

In 1969 and 1980, the government nationalized major private banks to improve credit flow to rural areas and priority sectors.

7

Modernization

New private banks, foreign banks, and new types of banks like small finance banks and payments banks have been introduced.