Important Historical Events on Indian Banking System

1The first bank inIndia-Bank of Hindustan- established1770
3First general insurance company established1850
5Bombay Stock Exchange (BSE) started trading1875
7Oriental Life Insurance Company established1918
9Bank of Bengal, Bank of Madras and Bank of Bombay were merged into Imperial Bank1921
11Establishment of -Hilton-Young Commission- to suggest a central bank for the country1926
13Establishment of -Reserve Bank ofIndia- as the central bank1935
15Control of Capital Issues Act imposed1947
17Establishment of Industrial Finance Corporation (IFC).1948
19Imperial Bank taken over by State Bank ofIndia; Establishment of Industrial Credit and Investment Corporation of India (ICICI)1955
21Life Insurance Company of India (LIC) was established1956
25Insertion of a new Chapter in RBI Act, 1934 to effectively supervise, control and regulate NBFCs1963
27Establishment of Industrial Development Bank ofIndia(IDBI)1964
29Deposit insurance extended to co-operative banks1966
31Nationalisation of 14 largest banks commercial banks1969
33Nationalisation of general insurance companies
Foreign Exchange Regulation Act (FERA) was promulgated which provided an opportunity to develop Indian equity market
35Establishment of Regional Rural Banks1975
37Second round of nationalisation of 6 commercial banks1980
39Establishment of National Bank for Agriculture and Rural Development (NABARD)
First credit rating agency established inIndia
41Establishment of Small Industries Development Bank ofIndia1990
43Report of the Committee on the Financial System, which provided the blueprint for first generation financial sector reforms.1991
45Introduction of prudential norms for income recognition and asset classification;
SEBI became capital market regulator
National Stock Exchange (NSE) was established as the first screen-based trading platform for traders.
47Introduction of Depositories1993
49Board for Financial Supervision, under RBI, established
New guidelines for entry of new private sector banks announced
Wholesale debt market operations started by NSE.
51Establishment of Institute for Development and Research in Banking Technology
Depositories Act was passed which allowed for holding of securities in dematerialised form.
53Termination of automatic monetisation of Government deficit
Statutory Liquidity Ratio (SLR) reduced to 25% (legal minimum)
55Insurance Regulation and Development Act passed
Detailed guidelines on risk management in banks announced
57Guidelines issued regarding interest rate swaps and forward rate agreement
New guidelines for categorisation and valuation of banks- investment portfolio announced
Liquidity Adjustment Facility introduced
Foreign Exchange Management Act
59Credit Information Bureau of India Ltd was established2001
61Revised guidelines announced for entry of new private banks
Clearing Corporation of India Limited became operational
63Central Listing Authority was constituted2003
63RBI Monetary Policy Committee was constituted2016
64Demonetization of Rs 500 and 100 notes2016

Updated: November, 2016
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