T
he Bank of Hindustan, established in 1770, is considered to be the first bank in IndiaFounded in Calcutta (now Kolkata) by Alexander Richardson and William Richardson. However, the bank had a relatively short existence and closed down in 1832. The oldest bank still in existence in India is the State Bank of India (SBI), which originated as the Bank of Calcutta in 1806 and later became the Bank of Bengal. It was one of the three presidency banks that were merged in 1921 to form the Imperial Bank of India, which eventually became the State Bank of India in 1955.
PRE INDEPENDENCE PERIOD (1786-1947)
During the pre-independence period in India, the banking sector underwent several developments. Here are some key points regarding banking in India before gaining independence in 1947:
Presidency Banks: The Bank of Calcutta (1806), the Bank of Bombay (1840), and the Bank of Madras (1843) were established during the British East India Company rule. These three banks, known as the presidency banks, played a crucial role in facilitating trade and financial transactions in their respective regions.
Imperial Bank of India: In 1921, the presidency banks were merged to form the Imperial Bank of India. The Imperial Bank served as a central bank for the country until the Reserve Bank of India (RBI) was established in 1935.
Reserve Bank of India (RBI): The RBI was established on April 1, 1935, as the central banking institution of India. It was given the responsibility of issuing and managing the country’s currency and controlling monetary policy.
State Bank of India (SBI): In 1955, the Imperial Bank of India was nationalized, and it was restructured to form the State Bank of India. SBI became a public sector bank and played a crucial role in the post-independence economic development of India.
Cooperative Banks: During the pre-independence period, cooperative banks were also established to cater to the financial needs of various communities and promote rural credit.
Limited Banking Network: The banking network was limited during this period, and the services were primarily concentrated in urban areas. The penetration of banking services in rural areas was limited.
Impact of World Wars: The two World Wars had significant effects on the Indian economy, and the banking sector also faced challenges during these periods.
Overall, the pre-independence period laid the foundation for the modern banking system in India. The subsequent years saw further developments, expansions, and reforms in the banking sector, contributing to the economic growth and financial stability of the country.
EFFECTS OF NATIONALIZATION
Expansion of banking services: One of the key objectives of the public sector is to expand banking services to rural and underserved areas. State banks were requested to open branches in rural and semiurban areas to increase financial inclusion and bring banking services closer to the masses.
Strengthening stability: Nationalization of banks helps strengthen financial stability. The large capital of state banks provides better risk management and the ability to withstand economic shocks.
Employee health: Taking into account the interests of bank employees and employees through measures such as improving work, safety and wage protection. Better salary. This helps maintain stable and dedicated employees.
Reducing monopolistic practices: Nationalization aims to break the monopoly of a few private institutions in the banking sector. It creates diversity and competition in the banking environment.
Economic Development: Nationalization contributes to overall economic development by providing financial support, providig loans for important projects, and promoting trade in various regions.
However, it is worth noting that national reforms still face some difficulties; These include efficiency issues, bureaucratic hurdles, and longterm tool downtime. Subsequent reforms in the banking sector, including liberalization and privatization in the 1990s, aimed to overcome some of these challenges, promote better business and create a good impact.
(RBI) HAS ISSUED VARIOUS GUIDELINES
As per my last information update in January 2022, Reserve Bank of India (RBI) has issued various Guidelines and measures for the economy . Problems caused by the COVID-19 epidemic. However, please note that conditions and procedures may have changed since then; so it’s worth checking the latest newsletter for the latest information. Some of the precautions and guidelines recommended during the initial stages of the pandemic are: Installment plan, which allows borrowers to defer their EMIs (equivalent to monthly salary) for a certain period of time. The move is intended to reduce financial burdens for individuals and businesses experiencing financial disruptions due to the pandemic.
Repayment: RBI allows financial institutions to refinance loans to borrowers facing financial difficulties due to COVID19. The purpose of restructuring is to reduce the loan amount and facilitate the repayment of the loan.
Liquidity Measures: The Reserve Bank of India has introduced various liquidity measures to ensure smooth functioning of the financial system and support the economy.The Reserve Bank of India has reduced its key policy to support the economy and ensure Stimulus: Lift when there is a crisis. Low interest rates are designed to encourage borrowing and spending.
Sector-specific credit support: The Reserve Bank of India has announced plans to provide credit support to certain sectors severely affected by the epidemic, such as travel tourism, hospitality and small businesses.
CAREER IN BANKING
The banking sector offers many career opportunities in a wide range of positions and levels. Some jobs in the banking industry include:
Bank Teller/Assistant: These jobs include day-to-day banking tasks such as handling customer transactions, managing accounts, and providing customer service. Employees will work in various departments such as deposits, withdrawals or credit.
Probationary Officer (PO): A PO is a probationary officer trained to become a bank auditor. They are responsible for various administrative and management functions.
Lan Officer: These professionals evaluate loan applications, evaluate the applicant’s creditworthiness, and make recommendations for approval or denial of the loan.
Credit Analyst: Credit analysts evaluate the credit risk associated with lending to individuals or businesses. They analyze financial data, business conditions and markets to make informed decisions.
Investment Banker: Working in the field of investment banking, which includes functions such as mergers and acquisitions, finance, financial consulting and accounting. Businesses often work with businesses and other financial institutions.
Financial Analyst: Financial analysts in the banking industry analyze financial data, prepare reports and provide insights into investment decisions. They may work in areas such as risk management, property management or data analysis.
Risk Managers: These professionals assess and manage a variety of risks associated with banking, including credit risk, business risk copy, and operational risk. They are developing strategies to reduce the decline.
CFO: Responsible for managing the financial operations of the company, including financial management, investment and mitigation of financial risk.
Branch Manager: A branch manager oversees the daily operations of a branch office, including customer service, sales and regulatory compliance.
IT Professionals: Since the banking industry is technology-based, IT professionals are required to develop and manage the banking system, cybersecurity and digital banking platforms.
Human Resources (HR) Specialists: Banks also have human resources departments responsible for recruitment, training, performance management and employee relations.
To work in banking, people usually need some background education, such as a college degree in finance, business, or another field. Entry requirements may vary depending on the specific position and level of responsibility. In addition, many banking jobs require technical skills, communication skills, and knowledge of financial markets and regulations.
