The firsst bank of limited liability managed by Indians was oudh commercial bank founded in 1881.Punjab National Bank was established in 1894.
Swadwshi movement, which began in 1906,encouraged the formation of a number of commercial banks. Banking crisis during 1913-1917 and failure of 588 banks in various states during the decade ended 1949 underlined the need for regulating and controlling commercial banks.
The Banking Companies Act was passed in February 1949, which was subsequently amended to read as Banking Regulation Act,1949. This Act provided the legal framework for regulation of the banking system by RBI. The largest bank Imperial bank of India was nationalized in 1955 and rechristened as State Bank of India, followed by formation of its 8 Associate Banks in 1959. In present time SBI has 5 Associate Banks. On January 1,1963 State Bank Of Bikaner was merged with State Bank Of Jaipur and a new bank was formed as State Bank of Bikaner & Jaipur and a new bank was formed as State Bank Of Bikaner & Jaipur. In 2008 State Bank Of Saurashtra was merged with SBI and State Bank of Indore was merged with SBI in2010.
with a view to bring commercial banks into the mainstream of economic development.
