INDIAN BANKING INDUSTRY

...
HISTORIAL BACKGROUND-----:-
The first bank of limited liability managed by indians was
OUDH COMMERCIAL BANK founded in 1881
Panjab nationaL Bank was estabilished in 1894..
Swadeshi movement which began in 1906, encouraged the formation of a number of
commercial bank..Banking crisis during 1913-1917 & failure of 588 banks in various
states during the decade ended 1949 underlined the need for regulating and controlling
commercial banks
The banking companies ACT, 1949. This act provided the legal frame work for regulation
of the banking system by RBI..The largest bank Imperial bank of india was
nationalised in 1955 & rechristened as State Bank of India, followed by formation of its 7
associate banks in 1959in present time SBI has 5 associated banks.
With a view to bring commercial banks into the mainstream of economic development
with definite social obligations & objectives, the government issued an ordinance on 19
july 1969 aquiring ownership and control of 14 major banks in the country. Six more
commercial banks were nationalised from april 15 1980

MEANING OF BANK--
Bank is a lawful organization , which accepts deposits that can be withdraw on demand.
it also lends money to individuals and business houses that need it

ROLE OF BANKING---
Banks provide funds for business as well as personal needs of individuals. They play a
significant role in the economy of a nation. Let us know about the role of banking..

.. It encourages saving habit amongst people and thereby makes funds available for
productive use.
.. It acts as an intermediary between people having surplus money and those requiring
money for various business activities.
.. It facilitates business transactions through receipt and payments by cheques instead
of currency..
.. It provides loans and advances to businessmen for short term & long term purposes.
.. It also facilitates import exoport transactions..
..It helps in national development by providing credit to farmers, small scale industries
and self employed people as well as to large business houses which lead to balanced
economic developmentin the country..
..In helps in rising the standard of living of people in general by proving loans for
purchase of consumer durable goods,houses,automobiles