First bank in India | Oldest bank in India | Name of first bank in India

Last updated on July 7th, 2022 at 06:31 am

Find the first bank in India. Modern banking had started in the 18th century. One of the oldest Indian text ‘Vedas’ describes the practice “usury” which means lending of money at high interests. During the early Vedic period, people from different clans and dynasties also practiced ‘usury’.

During the Mughal era, started the lending of loans and was known as ‘dastawez’. Then in the colonial era, before independence, the people use to borrow money from their landlords where they had to pay a high rate of interest.

The first bank in India was Bank of Hindusthan which was established in the year 1770 but failed in the year 1832. After this bank, a new bank was established named ‘Bank of India’ which was established in the year 1786 but was collapsed in 1791.

The Bank of Calcutta, was founded on 2 June 1806. It was renamed Bank of Bengal on 2 January 1809. This was one of the three banks funded by presidency government other two were the BANK OF BOMBAY (founded 1840) and the BANK OF MADRAS (founded 1843).

The merger of the presidency banks in 1921 resulted in the formation of the Imperial Bank of India (IBI), which quickly grew to become the most important and successful commercial bank in the nation.

Imperial Bank of India was renamed as State Bank of India after nationalization in the year 1955

Imperial Bank (IBI) was renamed the State Bank of India in 1955 after it was taken over jointly by the government of India and the Reserve Bank of India, which had been established in 1935.

Read Also: List Of Government Banks in India ( Public Sector Banks)

Following is the list of different banks:

Nedungadi Bank 1889 (Calicut) First Private Bank

Important Milestones

• The Bank of Hindustan was the very first bank to ever be established in the country of India. It was founded in the year 1770.
• The General Bank of India, which began operations in 1786, was the second bank.
• The State Bank of India is the country’s oldest bank that is still operational today.
• The State Bank of India was the country’s very first private commercial bank.
• Central Bank of India was the first public bank to introduce a Credit card.
• The Imperial Bank of India was renamed as the State Bank of India in 1955
• On April 1st, 1935, the Reserve Bank of India was officially established.
• Canara Bank was the first banking institution in India to receive ISO Certification.
• The first Indian to ever hold the position of governor of the Reserve Bank was CD Desmukh.
• ICICI Bank was the first bank in India to provide customers the internet banking facility.
• The State Bank of India is currently in second place worldwide when it comes to the total number of maximum branches that any single banking firm can have.
• The first Indian bank to establish a branch outside the country It’s the Bank of India.
• The Presidency Bank, the First Foreign Bank in India
• The first bank to offer savings accounts to customers: Bank of Bengal
• The Punjab National Bank was the very first bank in India to be run entirely by Indians.
• In 1987, HSBC was the first bank in India to install an automated teller machine.
• The Central Bank of India was the first Indian commercial bank that was entirely owned and operated by Indians.
• The first bank in India to provide cheques as a payment option: Bengal Bank
• The Presidency Bank in India was the first to implement a savings account system in 1833.
• The Bank of India was the first Indian financial institution to establish a branch outside of the country. 1946 saw the opening of the company’s first office in the city of London.
• The Allahabad Bank was established in 1865, making it the oldest public sector bank in India. It currently has branches located throughout the country and has been providing financial services to consumers for the past 145 years.
• The year 1770 marked the beginning of the banking sector in India.
• In the year 1881, the Oudh commercial bank became the very first commercial bank to ever be created.
• The Oudh Commercial Bank was the first Bank of India institution to have limited liability and to be controlled by an Indian Board. In the year 1881, it was formed in Faizabad.

Bank of Bengal was established in the year 1806, which later had become the State Bank of India in the year 1955. 

On June 2, 1806, the Bank of Calcutta was established in Calcutta, marking the beginning of what would become the State Bank of India. It was the very first joint-stock bank to ever be created in British India, and it was supported financially by the Government of Bengal.

State Bank of India is one of the largest public sector banks in India.

As India became independent, there was a drastic change in the economy of India. It paved a way for the establishment of many banks and financial institutions in India.

Reserve Bank of India

The Hilton Young Commission’s recommendations served as the foundation for the formation of the Reserve Bank of India. In compliance with the requirements of the Reserve Bank of India Act, 1934, the Reserve Bank of India was created on April 1st, 1935.

In addition to serving as a banker to other banking firms, Reserve Bank of India also provides banking services to the government.

Osborne Smith was the first person to hold the position of governor of the Reserve Bank.

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