Banking Sector

RBI was established on 1stApril 1935 and was nationalised on 1st January 1949.

Headquarters: Mumbai

It represents India at the IMF.

It is the Central Bank of India.

It is also known as the Banker's Bank.

Its first Governor was Sir Osbourne Arkall Smith and its first Indian Governor was C. D. Deshmukh (1943).

Bank rate, Open Market operations, SLR and CRR are the instruments of monetary Policy of RBI.

RBI has several banking functions  like; 1) Issue of currency notes,2) act as government’s bank 3) act as Banker’s bank,4) custodian of Foreign Exchange  Reserves,5) to manage public debt 6) to stabilise the value of money, etc.

Notes and coins in circulation  cash with banks + demand deposits + other deposits with RBI are called narrow money.

It is a member bank of the Asian Clearing Union.

The Reserve Bank of India has branch offices at most state capitals and at a few major cities in India total of 18 places

The first bank of limited liability managed by Indians was Oudh Commercial Bank founded in 1881.

SBI is the largest public sector bank in India.

The First Presidency Bank is the Bengal Presidency Bank (1806).

First Insurance Company - The calcutta Insurance Company

First Indian Life Insurance Company - Bombay Mutual Life Assurance Society

In 1955 Imperial Bank was nationalised and named as State Bank of India.

The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly owned subsidiary of the Reserve Bank of India

The term “Plastic Money” means credit cards.

The National Bank for Agricultural and Rural Development was set up in July 12, 1982.

The first nationalisation of banks took place on July 19, 1969

The second nationalization took place in 1980

In 1885, saving bank system  introduced in India.