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where the banks would open branches. None of the three banks had till then any branches (except for the sole attempt and that too a brief one by the Bank of Bengal at Mirzapore in 1839) despite the way that the agreement had issued them such power. In any case, when the three organization gatherings were ensured of the free usage of government

Treasury equalities at spots where they would open branches, they set out on branch advancement at a speedy pace. By 1876, the branches, workplaces and sub associations of the three organization banks secured an expansive segment of the genuine parts and an impressive parcel of the inland trade concentrates in India. While the Bank of Bengal had eighteen branches including its head office, general branches and sub workplaces, the Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

Organization Banks Act

The organization Banks Act, which came into operation on 1 May 1876, brought the three organization banks under an ordinary statute with similar imprisonments on business. The prohibitive relationship of the Government was, nevertheless, finished, however the banks continued holding charge of general society commitment working environments in the three organization towns, and the power of a bit of the organization counterbalances. The Act moreover stipulated the making of Reserve Treasuries at Calcutta, Bombay and Madras into which wholes over the foreordained minimum conforms ensured to the organization banks at simply their head working environments were to be held up. The Government could provide for the organization banks from such Reserve Treasuries however the last could look upon them more demonstration of generosity some assistance than as a benefit.

Bank of Madras

The decision of the Government to keep the surplus changes in Reserve Treasuries outside the run of the mill control of the organization banks and the related decision not to guarantee slightest government equalities at new places where branches were to be opened effectively checked the advancement of new branches after 1876. The pace of expansion saw in the before decade fell firmly but, by virtue of the Bank of Madras, it continued on an inconspicuous scale as the advantages of that bank were basically gotten from trade scattered among different port towns and inland centers of the organization.

India saw fast commercialisation in the last quarter of the nineteenth century as its rail line framework stretched out to cover all the critical locale of the country. New watering framework sorts out in Madras, Punjab and Sind revived the procedure of progress of subsistence items into cash trims, a section of which felt that it somehow into the outside organizations. Tea and coffee farms changed far reaching reaches

of the eastern Terais, the inclines of Assam and the Nilgiris into regions of endowment cultivating second to none. All these achieved the expansion of India's all inclusive trade more than six-fold. The three organization banks were both beneficiaries and promoters of this commercialisation change as they got the chance to be incorporated in the financing of essentially every trading, amassing and mining activity in the sub-landmass. While the Banks of Bengal and Bombay were involved with the financing of tremendous current amassing business ventures, the Bank of Madras went into the financing of broad propelled gathering organizations, the Bank of Madras went into the financing of little scale business endeavors in a way which had no parallel some place else. At any rate, the three banks were completely banned from any business including outside exchange. Not simply was such business considered unsafe for these banks, which held government stores, it was moreover expected that these banks getting a charge out of government bolster would offer uncalled for contention to the exchange banks which had by then interfaced India. This shirking continued till the making of the Reserve Bank of India in 1935.

Bank of Bombay

Organization Banks of Bengal

The Presidency Banks of Bengal, Bombay and Madras with their 70 branches were met fit as a fiddle the Imperial Bank of India. The triad had been changed into a stone landmark and a creature among Indian business banks had risen. The new bank handled the triple piece of a business bank, an agent's bank and a speculator to the organization.