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STATE BANK OF INDIA

Jan 21, 2020 351

HISTORY:

 The evolution of the State Bank of India dates back to the first decade of the nineteenth century. It began with the establishment of the Bank of Calcutta in Calcutta on June 2, 1806. The Bank was designated as the Bank of Bengal three years later, on January 2, 1809. It was the first common bank of British India established Under the patronage of the Government of Bengal. Subsequently, the Bank of Bombay (established April 15, 1840) and the Bank of Madras (established July 1, 1843) followed the Bank of Bengal. These three banks dominated the modern banking center in India, until they were amalgamated to form the Imperial Bank of India on January 27, 1921.

A major turning point in the history of the State Bank of India is the launching of India's first Five-Year Plan independent in 1951. The Plan was intended to serve the Indian economy in general and the country's rural sector in particular. Until the Plan, commercial banks in the country, including the Imperial Bank of India, confined their services to the urban sector. Therefore, in order to serve the economy as a whole and the rural sector in particular, the Committee of Rural Survey of All India recommended the formation of a state-sponsored and state-owned bank. The All-India Rural Credit Survey Committee proposed taking possession of the Imperial Bank of India, and integrating with it former state or state banks. Subsequently, a law was passed in the Indian Parliament in May 1955. As a result, the State Bank of India (SBI) was established on July 1, 1955.

The  result about State Bank of India More powerful, because as much as aquarter of The resources of the Indian banking system were directly controlled by the state. Subsequently, the Subsidiary Banks Act was enacted in 1959. The Act allowed the State Bank of India to make the eight former state banks associated with its subsidiaries. The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices that make up branches, sub-offices and three local offices, inherited from the Imperial Bank. Instead of serving as mere repositories of community savings and lending to the solvent parties, the State Bank of India served the needs of the clients, by banking on purpose. The roots of the State Bank of India lie in the first decade of the nineteenth century when the Bank of Calcutta, later renamed the Bank of Bengal, was established on June 2, 1806.

The Bank of Bengal and two other pension banks , Namely the Bank of Bombay (incorporated April 15, 1840) and the Bank of Madras (incorporated on July 1, 1843). The three banks of the Presidency were incorporated as joint-stock companies, and were the result of the royal charters. These three banks received the exclusive right to issue paper money in 1861 with the Currency Law, a right they held until the formation of the Reserve Bank of India. The banks of the Presidency were merged 27 of January of 1921, and the organized bank took like its name the Imperial Bank of India. The Imperial Bank of Indiac continued to be a corporation.

CHAIRMAN: Arundhati Bhattacharya