Banking Institutions and History

RBI is the official lender of the last resort in India. Lender of the last resort means Central bank coming to the rescue of other banks in times of financial crisis.

India nationalized 14 banks in 1969, bringing the total to 19 nationalized banks (including the earlier nationalized State Bank of India).

The Industrial Development Bank of India (IDBI) was established on July 1, 1964, as a subsidiary of the Reserve Bank of India.

NABARD (National Bank for Agriculture and Rural Development) was established in 1982 as the apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India.

ICICI stands for Industrial Credit and Investment Corporation of India. It was originally established as a development finance institution to provide medium and long-term project financing to Indian businesses.

Punjab National Bank acquired New Bank of India in 1993. Thereafter, no other nationalized bank in India has been merged into another bank.

In a major process of nationalization, seven subsidiaries of the State Bank of India were nationalized via the State Bank of India (Subsidiary Banks) Act, 1959. In 1969, fourteen major private commercial banks were nationalized.

B.  14

With Mrs. Indira Gandhi’s taking over as the Prime Minister of India, the Indian National Congress rallied for a state takeover of some of the major banks in the country. In what can be deemed a rather hasty move, the government promulgated an ordinance - the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 - thereby nationalizing all the 14 banks that were under consideration with effect from the midnight of 19 July 1969. As a follow-up to passing the ordinance, the Banking Companies (Acquisition and Transfer of Undertaking) Bill was taken up by the Parliament for discussion. It received a clear majority as well as the assent of the President within a month of issuing the ordinance.

The first bank purely managed bu Indian was Punjab National Bank, established in Lahore in 1895. The Punjab National Bank has not only survived till date but also one of the largest banks in India.

Regional Rural Banks were formed under the R.R.B. Act, 1976, with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.

First of all Imperial Bank of India was taken over by the Government of India on July $1$, $1955$ and was named as State Bank of India. Along with it eight other (at present seven) were converted as it associate banks and they formed State Bank Group.
$1$. The State Bank of Bikaner and Jaipur. (Earlier Bikaner and Jaipur were separate banks)
$2$. The State Bank of Hyderabad
$3$. The State Bank of Indore
$4$. The State Bank of Mysore
$5$. The State Bank of Saurastra
$6$. The State Bank of Patiala
$7$. The State Bank of Travancore.

The Government of India nationalized New Bank of India in 1980. Punjab National Bank acquired New Bank of India in 1993.

The Negotiable Instruments Act, 1881, is fundamental to banking as it governs instruments like cheques, bills of exchange, and promissory notes, which are essential for day-to-day banking transactions.

Asia Bank (often referring to entities like City Union Bank or similar regional private entities) is categorized as a private sector bank in the Indian banking landscape.