First Bank Established in India
The British East India Company was the first to issue paper currency notes. These paper currency notes were issued with the help of private banks at that time. The Bank of Hindustan was one of the private banks in the late 18th century. Hence it was involved in issuing the notes. In the year 1861, there was a Paper Currency Act passed by the British Government, conferring the monopoly to issue paper currency in India.
Check the important points about the First Bank of India below:
- In 1921 the Imperial Bank was established by the amalgamation of 3 presidency banks, i.e., Bombay, Calcutta, and Mumbai.
- The State Bank of India was established in 1806 as the Bank of Calcutta. In 1809 it was renamed as Bank of Bengal to serve all the requirements of Bengal.
- In 1840 Bank of Bombay and 1843 Bank of Madras were established by the Government. These two with the Bank of Bengal are known as presidency banks.
- The Imperial Bank of India was nationalized by the Government of India in 1955 with the Reserve Bank of India and named the State Bank of India (SBI).
- SBI is the largest bank in India.
- The Reserve Bank of India was established in 1935 under the Reserve Bank of India Act of 1934 on the recommendation of the Hilton Young Commission.
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