All right reserve for Successmate, Laxmi Nagar, Delhi

History of

Important Historical Events on Indian Banking System

Sl. Event

1 The first bank in India “Bank of Hindustan” established

3 First general insurance company established

5 Bombay Stock Exchange (BSE) started trading

7 Oriental Life Insurance Company established

9 Bank of Bengal, Bank of Madras and Bank of Bombay were merged into Imperial Bank

11 Establishment of “Hilton-Young Commission” to suggest a central bank for the country

13 Establishment of “Reserve Bank ofIndia” as the central bank

15 Control of Capital Issues Act imposed

17 Establishment of Industrial Finance Corporation (IFC).

19

Imperial Bank taken over by State Bank of India; Establishment of Industrial Credit and Investment Corporation of India (ICICI)

21 Life Insurance Company of India (LIC) was established

25 Insertion of a new Chapter in RBI Act, 1934 to effectively supervise, control and regulate NBFCs

27 Establishment of Industrial Development Bank of India(IDBI)

29 Deposit insurance extended to cooperative banks

Laxmi Nagar, Delhi-92

History of Banking System in India

Important Historical Events on Indian Banking System

Year

“Bank of 1770

First general insurance company 1850

Bombay Stock Exchange (BSE) 1875

Oriental Life Insurance Company 1918

Bank of Bengal, Bank of Madras and of Bombay were merged into 1921

Young Commission” to suggest a central bank 1926

Establishment of “Reserve Bank of 1935

Control of Capital Issues Act imposed 1947

Establishment of Industrial Finance 1948

Imperial Bank taken over by State India; Establishment of

Industrial Credit and Investment 1955

Life Insurance Company of India 1956

Insertion of a new Chapter in RBI Act, 1934 to effectively supervise, control 1963

India(IDBI) 1964

Deposit insurance extended to co-1966

31 Nationalisation of 14 largest banks commercial banks

33

Nationalisation of general insurance companies Foreign Exchange Regulation Act (FERA) was promulgated which provided an opportunity to develop Indian equity market

35 Establishment of Banks

37 Second round of nationalisation of 6 commercial banks

39

Establishment of National Bank for Agriculture and Rural Development (NABARD) First credit rating agency established in India

41 Establishment of Small Development Bank of

43

Report of the Committee on the Financial System, which provided the blueprint for first generation financial sector reforms.

45

Introduction of prudential norms for income recognition and asset classification; SEBI became capital market regulator

National Stock Exchange (NSE) was established as the first screentrading platform for traders.

47 Introduction of Depositories

49

Board for Financial Supervision, under RBI, establishedNew guidelines for entry of new private sector banks announced

Wholesale debt market operations started by NSE.

By P. K. Thakur

in India

Nationalisation of 14 largest banks commercial banks

1969

Nationalisation of general insurance

Foreign Exchange Regulation Act (FERA) was promulgated which provided an opportunity to develop Indian equity market

1973

Establishment of Regional Rural 1975

Second round of nationalisation of 6 commercial banks

1980

Establishment of National Bank for Agriculture and Rural Development

First credit rating agency established 1982

Establishment of Small Industries Development Bank of India

1990

Report of the Committee on the Financial System, which provided the blueprint for first generation financial

1991

Introduction of prudential norms for income recognition and asset

SEBI became capital market regulator

National Stock Exchange (NSE) was established as the first screen-based trading platform for traders.

1992

Introduction of Depositories 1993

Board for Financial Supervision, under RBI, established

guidelines for entry of new private sector banks announced

Wholesale debt market operations started by NSE.

1994

All right reserve for Successmate, Laxmi Nagar, Delhi-92 By P. K. Thakur

51

Establishment of Institute for Development and Research in Banking Technology Depositories Act was passed which allowed for holding of securities in dematerialised form.

1996

53

Termination of automatic monetisation of Government deficit Statutory Liquidity Ratio (SLR) reduced to 25% (legal minimum)

1997

55

Insurance Regulation and Development Act passed Detailed guidelines on risk management in banks announced

1999

57

Guidelines issued regarding interest rate swaps and forward rate agreement New guidelines for categorisation and valuation of banks’ investment portfolio announced Liquidity Adjustment Facility introduced Foreign Exchange Management Act

2000

59 Credit Information Bureau of India Ltd was established

2001

61

Revised guidelines announced for entry of new private banks Clearing Corporation of India Limited became operational

2002

63 Central Listing Authority was constituted

2003