The banking sector of the country changed in 75 years of independence, people got these facilities

On October 2, 1975, the government established the Regional Rural Bank to provide banking facilities to the villages. Today 43 Regional Rural Banks are functioning across the country having 22000 branches.

75 years of independence and banking sector

As the country is entering the 75th year of independence, the country’s banking sector has played an important role in the development of this journey. Banks have contributed immensely for the development of agriculture, industry, roads, electricity, telecom, education, real estate. In 1947, where 664 private banks had about 5000 branches, today there are about 1 lakh 42 thousand branches of 12 government banks, 22 private sector banks, 11 small finance banks, 43 regional rural banks and 46 foreign banks.

The Reserve Bank of India was established in 1935, under the RBI Act 1934, on the recommendations of the John Hilton Young Commission, also known as the Royal Commission on Indian Currency and Finance, the country’s central bank and nationalized on 1 January 1949. had gone. The Reserve Bank mainly carries out the business transactions of the government, issues currency, controls the operation and management of banking, grants licenses for new banks and provides loans to banks as per the need from time to time.

state Bank of India

In 1806, the Bank of Kolkata was established in Kolkata, which later came to be known as the Bank of Bengal. In 1921, Bank of Mumbai and Bank of Madras merged with Bank of Bengal. Which together became the Imperial Bank of India. On 1 July 1955, Imperial Bank was renamed as State Bank of India. The State Bank of India (Subsidy Act) was passed in 1955 itself. In October, State Bank of Hyderabad became the first associate bank of SBI. These associate banks include State Bank of Bikaner and Jaipur, State Bank of Indore, State Bank of Saurashtra, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore. Acting on the recommendations of the Narasimham Committee, the Central Government first established State Bank of Saurashtra in 2008, State Bank of Indore in 2010 and the remaining five Associate Banks State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore in 2017. State Bank of Patiala, State Bank of Travancore merged with State Bank of India. In its inception, State Bank of India had a total of 480 offices whereas today State Bank is the largest bank in the country with more than 24000 branches.

nationalization of banks

On 19 July 1969, 14 major banks of the country were nationalized for the first time and in the year 1980, 6 banks were nationalized again. After nationalization, there was an increase in the number of branches of banks. After getting up from the city, the banks went towards the countryside. According to the data, as on July 1969, these banks had only 8322 branches in the country. By the time of 2021, this figure became about 87 thousand. These nationalized banks played an important role in the development of the country and these banks have contributed immensely for the development of agriculture, industry, roads, electricity, telecom, education, real estate. DRI Like arranged loans for small loans to big projects.

computerization of banks

In the year 1980, the need for computers in banking was felt and in 1988 the Reserve Bank constituted a committee under the chairmanship of Dr. Rangarajan which recommended the installation of computers in banks and in 1993 agreed to install computers in banks and computers in banks. Started and changed with the passage of time and today banking is not possible without computer. Although computer banking became easy and available 24 hours a day, but due to this, the employment prospects in banks were reduced.

Co-Operative Bank

Cooperatives play an important role in the rural economy of India. The development of this cooperative has mainly been done with the aim of providing loans to the farmers at affordable rates. After independence, the cooperative movement spread more rapidly in different directions. The suggestions of “All India Village-Lending Committee – 1954” and “Baikunthal Mehta Committee – 1960” appointed by the government contributed significantly to the development of cooperatives. The financial condition of banks in India has deteriorated significantly in the last few years. Many scams have come to the fore like Punjab and Maharashtra Co-operative Bank, Yes Bank and Shimbholi Sugar Mills Bank scam etc.

In view of these incidents, the Government of India has passed an ordinance in June 2020 that now all the cooperative or co-operative banks of the country should be brought under the purview of the Reserve Bank. Recently, a separate ‘Ministry of Cooperation’ has been created by the Central Government to realize the vision of ‘Sahakar Se Samridhi’ (Prosperity through Cooperation) and to give a new direction to the cooperative movement. At present, there are 1482 Urban Co-operative Banks in the country, while there are 58 Multi-State Co-operative Banks. About 8.6 crore depositors have deposits of Rs 4 lakh crore 84 lakh in these 1540 banks.

regional rural bank

On October 2, 1975, the government established the Regional Rural Bank to provide banking facilities to the villages. Today 43 Regional Rural Banks are functioning across the country having 22000 branches. These banks play an important role in the economy of the rural sector.

According to a report, from 1947 to 1955, 360 small banks were sunk, in which crores of rupees of people’s deposits were drowned. Even after nationalization in 1969 and 1980, from time to time the condition of private banks deteriorated, these banks were merged by the government into nationalized banks, the major ones being Lakshmi Commercial Bank, Bank of Punjab, Hindustan Commercial Bank, Bharat Bank, Nedungadi Bank, New There were Bank of India, Global Trust Bank and United Western Bank. While Bank of Rajasthan and Sangli Bank have got ICICI. merged in the bank.

After the economic crisis of 1991, with a view to reform the banking sector, the Narasimham Committee or Financial Sector Reforms Committee was established in June 1991 under the chairmanship of M. Narasimham, it proposed wide autonomy for public sector banks. The committee had also recommended for the merger of large Indian banks. The same committee suggested the opening of new private banks, on the basis of which the government gave its permission in 1993.

New Generation Private Bank

The era of new private banks started in the year 1994. Today 8 New Private Generation Banks, 14 Old Generation Private Banks, 11 Small Finance Banks are functioning in the country. But all these private banks pay more attention to a particular section of the society whereas government banks are working for all sections of the society. In 2018, the government set up the India Post Payment Bank with the aim of making banking accessible from village to village using the post office network. Along with this many other private payment banks were also started.

merger of banks

Merger of three banks, Bank of Baroda, Vijaya Bank and Dena Bank in the year 2019 and Syndicate Bank with Canara Bank, Oriental Bank of Commerce, United Bank of India into Punjab National Bank and Allahabad Bank, Corporation Bank with effect from 1st April 2020 Andhra Bank was merged with Indian Bank. After this, at present 12 public sector banks are left. In its next phase, the government plans to privatize some banks.

Although private banks were started for the general public to take car, home or personal loans and credit cards, but public sector banks have a huge contribution in taking these loans to the general public. Similarly, these public sector banks have contributed mainly in implementing the Jan Dhan Yojana launched for financial inclusion of the present Modi government. More than 42 crore accounts were opened by banks in which about one lakh forty thousand crore rupees are deposited today. Similarly, there is a huge contribution of the banking sector in taking various schemes of the government like Atal Pension Yojana, Pradhan Mantri Krishi Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Mudra Yojana, Sukanya etc. major contribution.

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