View source for Banking in India

{{short description|Brief account of Indian banking}}
{{Redirect|Indian Banks|the historic house in the United States|Indian Banks (Simonson, Virginia)}}
{{Use dmy dates|date=March 2024}}
{{Use Indian English|date=March 2024}}
{{Banking}}
Modern '''banking in India''' originated in the mid of 18th century. Among the first [[bank]]s were the [[Bank of Hindustan]], which was established in 1770 and liquidated in 1829–32; and the [[General Bank of India]], established in 1786 but failed in 1791.<ref name="Rungta1970">{{cite book|author=Radhe Shyam Rungta|title=The Rise of Business Corporations in India, 1851–1900|url=https://books.google.com/books?id=ido8AAAAIAAJ&pg=PA221|access-date=12 January 2015|year=1970|publisher=CUP Archive|page=221|id=GGKEY:NC1SA25Y2CB}}</ref><ref name="Mishra1991">{{cite book|author=H. K. Mishra|title=Famines and Poverty in India|url=https://books.google.com/books?id=467VlNK6YfUC&pg=PA197|access-date=12 January 2015|year=1991|publisher=APH Publishing|isbn=978-81-7024-374-8|page=197}}</ref><ref name="S2011">{{cite book |author=Muthiah S |url=https://books.google.com/books?id=ISBN9789380032849 |title=Madras Miscellany |publisher=Westland |year=2011 |isbn=978-93-80032-84-9 |page=933 |access-date=12 January 2015}}</ref><ref name="AdventModern1720">{{cite web |title=The Advent of Modern Banking in India: 1720 to 1850s |url=http://www.rbi.org.in/currency/museum/m-1720.html |url-status=dead |archive-url=https://web.archive.org/web/20130526081538/http://www.rbi.org.in/currency/museum/m-1720.html |archive-date=May 26, 2013 |access-date=12 January 2015 |publisher=[[Reserve Bank of India]]}}</ref>

The largest and the oldest bank which is still in existence is the [[State Bank of India]] (SBI). It originated and started working as the [[Bank of Calcutta]] in mid-June 1806. In 1809, it was renamed as the [[Bank of Bengal]]. This was one of the three banks founded by a [[Presidencies and provinces of British India|presidency government]], the other two were the [[Bank of Bombay]] in 1840 and the [[Bank of Madras]] in 1843. The three banks were merged in 1921 to form the [[Imperial Bank of India]], which upon India's independence, became the [[State Bank of India]] in 1955. For many years, the presidency banks had acted as quasi-central banks, as did their successors, until the [[Reserve Bank of India]]<ref>{{Cite news|url=http://www.thehindu.com/opinion/editorial/The-Reserve-Bank-of-India%E2%80%99s-big-surprise/article16773630.ece|title=The Reserve Bank of India's big surprise|work=The Hindu|access-date=2017-02-26|language=en|archive-date=25 December 2022|archive-url=https://web.archive.org/web/20221225170419/https://www.thehindu.com/opinion/editorial/The-Reserve-Bank-of-India%E2%80%99s-big-surprise/article16773630.ece|url-status=live}}</ref> was established in 1935, under the [[Reserve Bank of India Act, 1934]].<ref name=EvoSBI>{{cite web|title=Evolution of SBI|url=https://www.sbi.co.in/portal/web/about-us/evolution-of-sbi|publisher=[[State Bank of India]]|access-date=12 January 2015|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414103557/https://www.sbi.co.in/portal/web/about-us/evolution-of-sbi|url-status=live}}</ref><ref name=BF:Banks>{{cite web|title=Business Financing: Banks|url=http://business.gov.in/business_financing/banks.php|publisher=[[Government of India]]|access-date=12 January 2015|archive-date=16 April 2008|archive-url=https://web.archive.org/web/20080416081144/http://business.gov.in/business_financing/banks.php|url-status=live}}</ref>

In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. However the merger of these associated banks with SBI went into effect on 1 April 2017. In 1969, the [[Government of India]] [[nationalised]] 14 major private banks; one of the big banks was [[Bank of India]]. In 1980, 6 more private banks were nationalised.<ref name=BankExpansion1968>{{cite web|title=Social Controls, the Nationalisation of Banks and the era of bank expansion – 1968 to 1985|url=http://www.rbi.org.in/scripts/chro_1968.aspx|publisher=[[Reserve Bank of India]]|access-date=12 January 2015|archive-date=16 January 2023|archive-url=https://web.archive.org/web/20230116055529/http://www.rbi.org.in/Scripts/chro_1968.aspx|url-status=live}}</ref> These nationalised banks are the majority of lenders in the [[Indian economy]]. They dominate the banking sector because of their large size and widespread networks.<ref name="Muraleedharan2009">{{cite book|author=D. Muraleedharan|title=Modern Banking: Theory And Practice|url=https://books.google.com/books?id=RX_dLGtIE3AC&pg=PA2|access-date=12 January 2015|year=2009|publisher=PHI Learning Pvt. Ltd.|isbn=978-81-203-3655-1|page=2}}</ref>

The Indian banking sector is broadly classified into [[scheduled]] and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; [[State Bank of India]] and its associates; [[Regional Rural Bank]]s (RRBs); foreign banks; and other Indian [[private sector]] banks.<ref name=BF:Banks/> The SBI has merged its Associate banks into itself to create the largest Bank in India on 1 April 2017. With this merger SBI has a global ranking of 236 on Fortune 500 index. The term commercial banks refers to both scheduled and non-scheduled commercial banks regulated under the [[Banking Regulation Act, 1949]].<ref name=BankOfficesCertainConcept>{{cite web|title=Directory of Bank Offices: Certain Concepts|url=http://www.rbi.org.in/scripts/certainconcepts.aspx|publisher=[[Reserve Bank of India]]|access-date=12 January 2015|archive-date=25 December 2022|archive-url=https://web.archive.org/web/20221225181008/https://www.rbi.org.in/scripts/certainconcepts.aspx|url-status=live}}</ref>

Generally the supply, product range and reach of banking in India is fairly mature-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the [[National Bank for Agriculture and Rural Development]] (NABARD) with facilities like [[microfinance]]. According to the [[Reserve Bank of India]] (RBI), there are over 24.23 million [[fixed deposits]] in India, with a total of over {{INRConvert|103|t|lk=r|year=2024}} currently locked in these deposits. This figure surpasses the {{INRConvert|18.5|t|lk=r|year=2024}} held in [[current accounts]] and {{INRConvert|59.70|t|lk=r|year=2024}} in [[savings account]]s, which together come to {{INRConvert|181|t|lk=r|year=2024}}.<ref>{{Cite web |last=Chadha |first=Sunainaa |date=July 7, 2024 |title=How much do Indians save in FDs? All India average is Rs 4.25 lakh |url=https://www.business-standard.com/finance/personal-finance/how-much-do-indians-save-in-fds-all-india-average-is-rs-42-573-123070700236_1.html |url-status=dead |archive-url=https://web.archive.org/web/20240125053023/https://www.business-standard.com/finance/personal-finance/how-much-do-indians-save-in-fds-all-india-average-is-rs-42-573-123070700236_1.html |archive-date=January 25, 2024 |access-date=April 28, 2024 |website=www.business-standard.com}}</ref><ref>{{cite web | url=https://www.wionews.com/business-economy/decoded-how-much-indians-save-in-fixed-deposits-614127 | title=Decoded: How much Indians save in Fixed Deposits | date=11 July 2023 | access-date=25 January 2024 | archive-date=25 January 2024 | archive-url=https://web.archive.org/web/20240125051519/https://www.wionews.com/business-economy/decoded-how-much-indians-save-in-fixed-deposits-614127 | url-status=live }}</ref> The majority of research studies state that Indians have historically preferred [[Deposit account|bank deposits]] over other investing options because of safety and security.<ref>{{cite book|title=Economic Development and Reforms in India and China: A Comparative Perspective|author=Swamy, S.|isbn=978-8-1241-1535-0|lccn=2010327657|year=2010|pages=105–120|publisher=Har-Anand Publications}}</ref><ref>{{cite book|title=INVESTMENT PERSPECTIVES & OPPORTUNITIES FOR RETAIL INVESTORS IN INDIA|author=Bora, C.A.P.P.|isbn=978-1-4357-6364-7|year=2022|pages=100–120|publisher=Ashok Yakkaldevi}}</ref><ref>{{cite book|title=Behavioural Influence on Investment Decision by Residents & Non Residents of India|author=T, G.|isbn=978-9-3949-5823-4|pages=75–85|publisher=Archers & Elevators Publishing House}}</reF> Over 95% of Indian consumers prefer to keep their money in bank accounts, while less than 10% choose to invest in equities or mutual funds, according to a [[SEBI]] survey.<ref name=":bs01">{{Cite web |title=Indians Prefer Fixed Deposits to Equities MFS For Investment Sebi Survey |url=https://www.business-standard.com/article/pf/indians-prefer-fixed-deposits-to-equities-mfs-for-investment-sebi-survey-117040500977_1.html |website=www.business-standard.com}}</ref> As per the Reserve Bank of India (RBI), a significant portion of Indian household financial assets are held in the form of bank deposits.<ref name=rbi04>{{cite news | url=https://economictimes.indiatimes.com/wealth/personal-finance-news/66-of-household-assets-are-kept-as-bank-fixed-deposits-cash-rbi-bulletin/articleshow/76355177.cms | title=66% of household assets are kept as bank fixed deposits, cash: RBI bulletin | newspaper=The Economic Times | date=15 June 2020 | last1=Mehta | first1=Riju }}</ref><ref name=rbi03>{{cite web | url=https://rbi.org.in/scripts/BS_ViewBulletin.aspx/Record/1564636/BS_ViewBulletin.aspx?Id=20143 | title=Reserve Bank of India - RBI Bulletin }}</ref><ref>{{cite web | url=https://www.rbi.org.in/scripts/PublicationsView.aspx?id=21049 | title=Reserve Bank of India - Publications }}</ref><ref name=rbi05>{{cite web | url=https://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=18994 | title=Reserve Bank of India - RBI Bulletin }}</ref><ref>{{cite web | url=https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=19895 | title=Reserve Bank of India - RBI Bulletin }}</ref> This is consistent with the traditional preference of Indian households for safe and [[Liquid capital|liquid assets]].<ref name=rbi05/><ref name=rbi04/><ref name=rbi03/>

==History==

===Ancient India===
The [[Vedas]], ancient Indian texts, mention the concept of [[usury]], with the word ''kusidin'' translated as "usurer". The [[Sutra]]s (700–100 BCE) and the [[Jataka]]s (600–400 BCE) also mention usury. Texts of this period also condemned usury: [[Vasishtha]] forbade [[Brahmin caste|Brahmin]] and [[Kshatriya]] [[Varna (Hinduism)|varna]]s from participating in usury. By the 2nd century CE, usury became more acceptable.<ref name="Gottheil2013">{{cite book|author=Fred Gottheil|title=Principles of Economics|url=https://books.google.com/books?id=k3cRDRxC-GQC&pg=PA417|access-date=11 January 2015|date=1 January 2013|publisher=Cengage Learning|isbn=978-1-133-96206-9|page=417}}</ref> The [[Manusmriti]] considered usury an acceptable means of acquiring wealth or leading a livelihood.<ref name="Das1980">{{cite book|author=Santosh Kumar Das|title=The economic history of ancient India|url=https://books.google.com/books?id=J4njwI7BMVEC&pg=PA229|year=1980|publisher=Cosmo Publications|isbn=978-81-307-0423-4|pages=229–}}</ref> It also considered money lending above a certain rate and different ceiling rates for different castes a grave sin.<ref name="Gregory1997">{{cite book|author=Chris A. Gregory|title=Savage Money: The Anthropology and Politics of Commodity Exchange|url=https://books.google.com/books?id=vx47hMCIkuoC&pg=PA212|access-date=11 January 2015|year=1997|publisher=Taylor & Francis|isbn=978-90-5702-091-9|page=212}}</ref>

The Jatakas, [[Dharmashastras]] and [[Kautilya]] also mention the existence of loan [[deed]]s, called ''rnapatra'', ''rnapanna'', or ''rnalekhaya.''<ref name="Aquique1974">{{cite book|author=Md. Aquique|title=Economic History of Mithila|url=https://books.google.com/books?id=upBET7WbBxQC&pg=PA157|access-date=12 January 2015|year=1974|publisher=Abhinav Publications|isbn=978-81-7017-004-4|page=157}}</ref><ref name=EvolutionPayment>{{cite web|title=Evolution of Payment Systems in India|url=http://www.rbi.org.in/scripts/PublicationsView.aspx?id=155|archiveurl=https://web.archive.org/web/20110501072135/http://www.rbi.org.in/scripts/PublicationsView.aspx?id=155|archivedate=1 May 2011|publisher=[[Reserve Bank of India]]|date=12 December 1998}}</ref>

Later during the [[Maurya dynasty|Mauryan period]] (321–185 BCE), an instrument called ''[[Adesha#Mercantile usage|adesha]]'' was in use, which was an order on a banker directing him to pay the sum on the note to a third person, which corresponds to the definition of a modern [[bill of exchange]]. The considerable use of these instruments has been recorded{{citation needed|date=July 2016}}. In large towns, merchants also gave [[letters of credit]] to one another.<ref name=EvolutionPayment/>

===Medieval period===
The use of loan deeds continued into the [[Mughal dynasty|Mughal era]] and were called ''dastawez'' (in Urdu/Hindi). Two types of loans deeds have been recorded. The ''dastawez-e-indultalab'' was payable on demand and ''dastawez-e-miadi'' was payable after a stipulated time. The use of payment directives by royal treasuries, called  ''barattes'', have been also recorded. There are also records of Indian bankers using issuing bills of exchange on foreign countries. The evolution of ''[[hundi]]s'', a type of credit instrument, also occurred during this period and remain in use.<ref name=EvolutionPayment/>

===Colonial era===
During the period of British rule merchants established the Union Bank of Calcutta in 1829,<ref>{{citation|title=Partner in Empire: Dwarkanath Tagore and the Age of Enterprise in Eastern India|first=Blair B. |last=Kling|publisher=University of California Press|chapter=The Fall of the Union Bank|year=1976 |page=198|isbn=9780520029279|chapter-url=https://books.google.com/books?id=KVBKeqaYeVwC&pg=PA198}}</ref> first as a private joint stock association, then partnership. Its proprietors were the owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed that it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845 but failed in 1848, having been insolvent for some time and having used new money from depositors to pay its dividends.<ref>Cooke, Charles Northcote (1863) ''The rise, progress, and present condition of banking in India''. (Printed by P.M. Cranenburgh, Bengal Print. Co.), pp.177–200.</ref>

The [[Allahabad Bank]], established in 1865 and still functioning today, is the oldest [[Joint-stock company|Joint Stock bank]] in India, it was not the first though. That honour belongs to the Bank of Upper India, which was established in 1863 and survived until 1913, when it failed, with some of its assets and liabilities being transferred to the [[Alliance Bank of Simla]].

Foreign banks too started to appear, particularly in [[Kolkata|Calcutta]], in the 1860s. [[Grindlays Bank]] opened its first branch in [[Calcutta]] in 1864.<ref>{{cite book|title=Shankar's Weekly|date=1974|pages=2, 3|url=https://books.google.com/books?id=L6IcAQAAMAAJ&q=grindlays+bank+first+branch+in+calcutta+opened+in+year|access-date=24 August 2017|language=en|archive-date=27 February 2024|archive-url=https://web.archive.org/web/20240227130746/https://books.google.com/books?id=L6IcAQAAMAAJ&q=grindlays+bank+first+branch+in+calcutta+opened+in+year|url-status=live}}</ref> The [[Comptoir d'Escompte de Paris]] opened a branch in Calcutta in 1860, and another in [[Mumbai|Bombay]] in 1862; branches followed in [[Chennai|Madras]] and [[Pondicherry (city)|Pondicherry]], then a French possession. [[HSBC]] established itself in [[Bengal]] in 1869.  Calcutta was the most active trading port in India, mainly due to the trade of the [[British Raj|British Empire]], and so became a banking centre.

The first entirely Indian joint stock bank was the [[Oudh Commercial Bank]], established in 1881 in [[Faizabad]]. It failed in 1958. The next was the [[Punjab National Bank]], established in [[Lahore]] in 1894, which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the [[Indian rebellion of 1857|Indian rebellion]], and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian [[Joint stock company|joint stock]] banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalised and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."{{citation needed|date=June 2016}}

The period between 1906 and 1911 saw the establishment of banks inspired by the [[Swadeshi]] movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as [[Catholic Syrian Bank]], [[South Indian Bank|The South Indian Bank]], [[Bank of India]], [[Corporation Bank]], [[Indian Bank]], [[Bank of Baroda]], [[Canara Bank]] and [[Central Bank of India]].

The fervour of Swadeshi movement led to the establishment of many private banks in [[Dakshina Kannada]] and [[Udupi district]], which were unified earlier and known by the name South Canara (South Kanara) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".{{citation needed|date=June 2016}}

The inaugural officeholder was the Britisher Sir Osborne Smith(1 April 1935), while C. D. Deshmukh(11 August 1943) was the first Indian governor. On 12 December 2018, Shaktikanta Das, who was the finance secretary with the Government of India, begins his journey as the new RBI Governor, taking charge from Urjit R Patel.

During the [[First World War]] (1914–1918) through the end of the [[Second World War]] (1939–1945), and two years thereafter until the [[Partition of India|independence]] of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the [[Economy of India|Indian economy]] gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

{| class="wikitable sortable"
|-
! Years !! Number of banks <br />that failed !! Authorised Capital<br /> ({{INR}} Lakhs) !! Paid-up Capital<br /> ({{INR}} Lakhs)
|-
| align="right"|1913 || align="right"|12 || align="right"|274 || align="right"|35
|-
| align="right"|1914 || align="right"|42 || align="right"|710 || align="right"|109
|-
| align="right"|1915 || align="right"|11 || align="right"|56 || align="right"|5
|-
| align="right"|1916 || align="right"|13 || align="right"|231 || align="right"|4
|-
| align="right"|1917 || align="right"|9 || align="right"|76 || align="right"|25
|-
| align="right"|1918 || align="right"|7 || align="right"|209 || align="right"|1
|}

==Post-Independence==
During 1938–46, bank branch offices trebled to 3,469<ref name=EPWpostwar1949>{{cite journal | journal= Economic Weekly | url= http://www.epw.in/system/files/pdf/1949_1/1/postwar_developments_in_banking_in_india.pdf | quote= the total number of bank branches registered a three-fold increase | title= Post-War Developments in Banking in India | date= 1 January 1949 | pages= 17–18 | place= Mumbai | issn= 0012-9976 | publisher= Sameeksha Trust | access-date= 4 October 2017 | archive-date= 4 October 2017 | archive-url= https://web.archive.org/web/20171004191303/http://www.epw.in/system/files/pdf/1949_1/1/postwar_developments_in_banking_in_india.pdf | url-status= live }}</ref> and deposits quadrupled to {{INR}} 962 crore. Nevertheless, the [[partition of India]] in 1947 adversely impacted the economies of [[Punjab, India|Punjab]] and [[West Bengal]], paralysing banking activities for months. India's [[Partition of India|independence]] marked the end of a regime of the [[Laissez-faire]] for the Indian banking. The [[Government of India]] initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a [[mixed economy]]. This resulted in greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

* The [[Reserve Bank of India]], India's central banking authority, was established in April 1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).<ref name=RBIabout>{{cite web |access-date=2019-09-06 |title=Reserve Bank of India – About Us |url=https://www.rbi.org.in/Scripts/AboutusDisplay.aspx |website=Reserve Bank of India |archive-date=2 March 2021 |archive-url=https://web.archive.org/web/20210302112950/https://rbi.org.in/Scripts/AboutusDisplay.aspx |url-status=live }}</ref>
* In 1949, the [[Banking Regulation Act, 1949|Banking Regulation Act]] was enacted, which empowered the [[Reserve Bank of India]] (RBI) to regulate, control, and inspect the banks in India.
* The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

===Nationalisation in 1969 ===
Despite the provisions, control and regulations of the [[Reserve Bank of India]], banks in India except the [[State Bank of India]] (SBI), remain owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the [[Indian economy]]. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry.<ref>{{Cite news|url=https://www.thehindu.com/archives/plan-for-social-control-of-banks/article21665627.ece|title=Plan for social control of banks|date=2017-12-15|work=The Hindu|access-date=2020-02-16|language=en-IN|issn=0971-751X|archive-date=16 February 2020|archive-url=https://web.archive.org/web/20200216113459/https://www.thehindu.com/archives/plan-for-social-control-of-banks/article21665627.ece|url-status=live}}</ref> [[Indira Gandhi]], the then [[Prime Minister of India]], expressed the intention of the [[Government of India]] in the annual conference of the All India Congress Meeting in a paper entitled ''Stray thoughts on Bank Nationalization.''<ref name="Austin">{{Cite book |last=Austin |first=Granville | title=Working a Democratic Constitution – A History of the Indian Experience |url=https://archive.org/details/workingdemocrati00aust |url-access=limited |publisher=Oxford University Press |year=1999 |location=New Delhi |pages=[https://archive.org/details/workingdemocrati00aust/page/n118 215] |isbn=0-19-565610-5}}</ref><ref>{{Cite news|url=https://www.thehindu.com/archives/from-the-archives-july-10-1969-pm-wants-selective-bank-take-over/article28333537.ece|title=From the Archives (July 10, 1969): P.M. wants selective bank take-over|date=2019-07-10|work=The Hindu|access-date=2019-08-09|language=en-IN|issn=0971-751X|archive-date=2 February 2021|archive-url=https://web.archive.org/web/20210202011227/https://www.thehindu.com/archives/from-the-archives-july-10-1969-pm-wants-selective-bank-take-over/article28333537.ece|url-status=live}}</ref>

Thereafter, the Government of India issued the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 and [[Nationalization|nationalized]] the 14 largest commercial banks with effect from the midnight of 19 July 1969 each with reserves of more than Rs.50 crore. These banks contained 85 percent of bank deposits in the country. <ref name="Austin" /> Within two weeks of the issue of the ordinance, the [[Parliament of India|Parliament]] passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill,<ref>{{Cite news|url=https://www.thehindu.com/archives/from-the-archives-august-5-1969-bill-on-bank-nationalisation/article28815198.ece|title=From the Archives (August 5, 1969): Bill on Bank nationalisation|date=2019-08-05|work=The Hindu|access-date=2019-08-09|language=en-IN|issn=0971-751X|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414104446/https://www.thehindu.com/archives/from-the-archives-august-5-1969-bill-on-bank-nationalisation/article28815198.ece|url-status=live}}</ref> and it received [[President of India|presidential]] approval on 9 August 1969.

The following banks were nationalized in 1969:

*[[Allahabad Bank]] (now Indian Bank)
*[[Bank of Baroda]]
*[[Bank of India]]
*[[Bank of Maharashtra]]
*[[Central Bank of India]]
*[[Canara Bank]]
*[[Dena Bank]] (now Bank of Baroda)
*[[Indian Bank]]
*[[Indian Overseas Bank]]
*[[Punjab National Bank]]
*[[Syndicate Bank]] (now Canara Bank)
*[[UCO Bank]]
*[[Union Bank of India]]
*[[United Bank of India]] (now Punjab National Bank)

===Nationalisation in 1980===
{{Specific Banking Frameworks Sidebar}}
A second round of nationalizations of six more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second round of nationalizations, the Government of India controlled around 91% of the banking business of India.

The following banks were nationalized in 1980:

*[[Punjab and Sind Bank]]
*[[Vijaya Bank]] (Now Bank of Baroda)
*[[Oriental Bank of Commerce]] (now Punjab National Bank)
*[[Corporation Bank]] (now Union Bank of India)
*[[Andhra Bank]] (now Union Bank of India)
*[[New Bank of India]] (now Punjab National Bank)

Later on, in the year 1993, the government merged [[New Bank of India]] with [[Punjab National Bank]].<ref name="AryaTandon2003">{{cite book|url=https://books.google.com/books?id=FMSR_5W7skcC&pg=PA369|title=Economic Reforms in India: From First to Second Generation and Beyond|author1=Parmatam Parkash Arya|author2=B. B. Tandon|date=2003|publisher=Deep & Deep Publications|isbn=978-81-7629-435-5|pages=369–}}</ref> It was, at that time, the only merger between nationalised banks and resulted in the reduction of their number from 20 to 19. Until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.{{Citation needed|date=March 2019}}

=== Liberalisation in the 1990s ===
In the early 1990s, the then government embarked on a policy of [[Economic liberalisation in India|liberalisation]],<ref>{{Cite web|title=The Success of India's Liberalization in 1991|url=https://trends.ufm.edu/en/article/indias-liberalization-1991/|access-date=2021-09-09|website=UFM Market Trends|language=en-US|archive-date=9 September 2021|archive-url=https://web.archive.org/web/20210909102224/https://trends.ufm.edu/en/article/indias-liberalization-1991/|url-status=live}}</ref> licensing a small number of private banks.<ref>{{Cite web|last1=IndianMoney|last2=IndianMoney|title=List of Private Banks in India {{!}} IndianMoney|url=https://indianmoney.com/articles/list-of-private-banks-in-india|access-date=2021-09-09|website=indianmoney.com|language=en|archive-date=9 September 2021|archive-url=https://web.archive.org/web/20210909102223/https://indianmoney.com/articles/list-of-private-banks-in-india|url-status=live}}</ref> These came to be known as ''New Generation tech-savvy banks'', and included [[Global Trust Bank (India)|Global Trust Bank]] (the first of such new generation banks to be set up), which later amalgamated with [[Oriental Bank of Commerce]], [[IndusInd Bank]], [[UTI Bank]] (since renamed [[Axis Bank]]), [[ICICI Bank]] and [[HDFC Bank]].<ref>{{Cite web|last=Ago|first=Mkdigestin #mgsc • 2 Years|date=2019-04-17|title=Prowess of New Generation tech-savvy Private Banks in India|url=https://steemit.com/mgsc/@mkdigest/prowess-of-new-generation-tech-savvy-private-banks-in-india|access-date=2021-09-09|website=Steemit|language=en|archive-date=9 September 2021|archive-url=https://web.archive.org/web/20210909102233/https://steemit.com/mgsc/@mkdigest/prowess-of-new-generation-tech-savvy-private-banks-in-india|url-status=live}}</ref> This move – along with the rapid growth in the [[economy of India]] – revitalised the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up, with proposed relaxation of norms for foreign direct investment. All foreign investors in banks may be given voting rights that could exceed the present cap of 10% at present.<ref>{{Cite web|date=2016-06-22|title=Voting rights for foreign shareholders: Centre plans raising ceiling to up to 20 per cent amid cash crunch|url=https://indianexpress.com/article/business/banking-and-finance/voting-rights-for-foreign-shareholders-centre-plans-raising-ceiling-to-up-to-20-per-cent-amid-cash-crunch-2867930/|access-date=2020-06-11|website=The Indian Express|language=en|archive-date=11 June 2020|archive-url=https://web.archive.org/web/20200611165718/https://indianexpress.com/article/business/banking-and-finance/voting-rights-for-foreign-shareholders-centre-plans-raising-ceiling-to-up-to-20-per-cent-amid-cash-crunch-2867930/|url-status=live}}</ref> In 2019, Bandhan bank specifically, increased the foreign investment percentage limit to 49%.<ref>{{Cite news|date=2019-11-04|title=Bandhan Bank hikes foreign investment limit to 49%|work=The Economic Times|url=https://economictimes.indiatimes.com/markets/stocks/news/bandhan-bank-hikes-foreign-investment-limit-to-49/articleshow/71906414.cms|access-date=2020-06-11|archive-date=14 June 2020|archive-url=https://web.archive.org/web/20200614213700/https://economictimes.indiatimes.com/markets/stocks/news/bandhan-bank-hikes-foreign-investment-limit-to-49/articleshow/71906414.cms|url-status=live}}</ref> It has gone up to 74% with some restrictions.<ref>{{Cite news|title=Bandhan Bank hikes foreign investment limit to 49%|work=The Economic Times|url=https://economictimes.indiatimes.com/markets/stocks/news/bandhan-bank-hikes-foreign-investment-limit-to-49/articleshow/71906414.cms?from=mdr|access-date=2021-09-09|archive-date=9 September 2021|archive-url=https://web.archive.org/web/20210909102223/https://economictimes.indiatimes.com/markets/stocks/news/bandhan-bank-hikes-foreign-investment-limit-to-49/articleshow/71906414.cms?from=mdr|url-status=live}}</ref>

The new policy shook the banking sector in India completely. Bankers, till this time, were used to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People demanded more from their banks and received more.

=== PSB amalgamations in the 2000s and 2010s===

====SBI====
SBI merged with its associate bank [[State Bank of Saurashtra]] in 2008 and [[State Bank of Indore]] in 2010.

Following a merger process,<ref>{{cite web|url=http://www.livemint.com/Industry/50cZxIsB9vMOJKae2UGl0M/SBI-units-discussed-consolidation-with-parent-bank-unions.html|title=SBI merger: India may soon have a global Top 50 bank|first=Aparna|last=Iyer|date=17 May 2016|access-date=1 July 2016|archive-url=https://web.archive.org/web/20160630191358/http://www.livemint.com/Industry/50cZxIsB9vMOJKae2UGl0M/SBI-units-discussed-consolidation-with-parent-bank-unions.html|archive-date=30 June 2016|url-status=live}}</ref><ref>{{cite news|url=http://www.thehindu.com/business/five-associate-banks-to-merge-with-sbi/article8612665.ece|title=Five associate banks to merge with SBI|date=18 May 2016|access-date=1 July 2016|newspaper=The Hindu|archive-url=https://web.archive.org/web/20160621001933/http://www.thehindu.com/business/five-associate-banks-to-merge-with-sbi/article8612665.ece|archive-date=21 June 2016|url-status=live|last1=Saha|first1=Manojit}}</ref> the merger of the 5 remaining associate banks, (viz. [[State Bank of Bikaner and Jaipur]], [[State Bank of Hyderabad]], [[State Bank of Mysore]], [[State Bank of Patiala]], [[State Bank of Travancore]]); and the [[Bharatiya Mahila Bank]]) with the SBI was given an in-principle approval by the Union Cabinet on 15 June 2016.<ref>{{Cite web |url=https://www.financialexpress.com/industry/banking-finance/sbi-merges-with-5-associates-new-entity-set-to-enter-worlds-top-50-banks-list/286525/ |title=SBI merges with 5 associates: New entity set to enter world's top 50 banks list |date=16 June 2016 |access-date=30 August 2019 |archive-url=https://web.archive.org/web/20190830174049/https://www.financialexpress.com/industry/banking-finance/sbi-merges-with-5-associates-new-entity-set-to-enter-worlds-top-50-banks-list/286525/ |archive-date=30 August 2019 |url-status=live }}</ref> This came a month after the SBI board had, on 17 May 2016, cleared a proposal to merge its five associate banks and Bharatiya Mahila Bank with itself.<ref>{{Cite web |url=https://www.thehindubusinessline.com/money-and-banking/cabinet-okays-merger-of-associates-with-sbi/article8732405.ece |title=Cabinet okays merger of associates with SBI |date=15 June 2016 |access-date=30 August 2019 |archive-url=https://web.archive.org/web/20190830174050/https://www.thehindubusinessline.com/money-and-banking/cabinet-okays-merger-of-associates-with-sbi/article8732405.ece |archive-date=30 August 2019 |url-status=live }}</ref>

On 15 February 2017, the Union Cabinet approved the merger of five associate banks with SBI.<ref>{{Cite news |url=http://economictimes.indiatimes.com/industry/banking/finance/banking/ahead-of-merger-with-sbi-associate-sbt-to-raise-up-to-rs-600-crore/articleshow/57222287.cms |title=Ahead of merger with SBI, associate SBT to raise up to Rs 600 crore |newspaper=The Economic Times |date=18 February 2017 |access-date=18 February 2017 |archive-url=https://web.archive.org/web/20170219021652/http://economictimes.indiatimes.com/industry/banking/finance/banking/ahead-of-merger-with-sbi-associate-sbt-to-raise-up-to-rs-600-crore/articleshow/57222287.cms |archive-date=19 February 2017 |url-status=live }}</ref> An analyst foresaw an initial negative impact as a result of different pension liability provisions and accounting policies for bad loans.<ref>{{Cite web |url=https://www.livemint.com/Money/u4u9tx6Pt3MkwEP1g8CnTK/Who-benefits-from-merger-of-SBI-associates.html |title=Who benefits from merger of SBI, associates? |date=20 June 2016 |access-date=30 August 2019 |archive-url=https://web.archive.org/web/20190830172033/https://www.livemint.com/Money/u4u9tx6Pt3MkwEP1g8CnTK/Who-benefits-from-merger-of-SBI-associates.html |archive-date=30 August 2019 |url-status=live }}</ref><ref>{{Cite news |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/sbis-merger-could-see-the-banking-behemoth-leapfrogging-into-the-global-top-50/articleshow/58617431.cms |title=SBI's merger could see the banking behemoth leapfrogging into the global top 50 |newspaper=The Economic Times |date=11 May 2017 |access-date=30 August 2019 |archive-url=https://web.archive.org/web/20190830172033/https://economictimes.indiatimes.com/industry/banking/finance/banking/sbis-merger-could-see-the-banking-behemoth-leapfrogging-into-the-global-top-50/articleshow/58617431.cms |archive-date=30 August 2019 |url-status=live |last1=Gupta |first1=Deepali }}</ref> The merger went into effect from 1 April 2017.<ref>{{Cite news |url=https://www.thehindu.com/business/Industry/sbi-five-associate-banks-bmb-merge-with-sbi/article17757316.ece |title=Five associate banks, BMB merge with SBI |newspaper=The Hindu |date=April 2017 |access-date=30 August 2019 |archive-url=https://web.archive.org/web/20170401125350/http://www.thehindu.com/business/Industry/sbi-five-associate-banks-bmb-merge-with-sbi/article17757316.ece |archive-date=1 April 2017 |url-status=live }}</ref>[[File:SBI Mumbai LHO.jpg|thumb|alt=SBI Mumbai LHO.|State Bank of India ''[[Mumbai]]'' LHO]]

====BOB====
On 17 September 2018, the Government of India proposed the amalgamation of [[Dena Bank]] and [[Vijaya Bank]] with erstwhile [[Bank of Baroda]], pending (namesake) approval from the boards of the three banks.<ref>{{Cite news|url=https://economictimes.indiatimes.com/industry/banking/finance/banking/bank-of-baroda-vijaya-bank-and-dena-bank-to-be-merged/articleshow/65844142.cms|title=Bank of Baroda, Vijaya Bank and Dena Bank to be merged|date=18 September 2018|work=The Economic Times|access-date=5 April 2019|archive-date=30 August 2019|archive-url=https://web.archive.org/web/20190830033620/https://economictimes.indiatimes.com/industry/banking/finance/banking/bank-of-baroda-vijaya-bank-and-dena-bank-to-be-merged/articleshow/65844142.cms|url-status=live}}</ref> The [[Union Council of Ministers|Union Cabinet]] and the boards of the banks approved with the merger on 2 January 2019. Under the terms of the amalgamation, Dena Bank and Vijaya Bank shareholders received 110 and 402 equity shares of the Bank of Baroda, respectively, of face value {{INR}}2 for every 1,000 shares they held. The amalgamation became effective from 1 April 2019.<ref>{{cite web |title=Vijaya Bank, Dena Bank amalgamation with BoB is effective from April 1; here's the share exchange plan |url=https://www.businesstoday.in/sectors/banks/vijaya-bank-dena-bank-amalgamation-bob-effective-april-1-share-exchange-plan/story/320823.html |website=Business Today |date=21 February 2019 |access-date=14 March 2019 |archive-date=27 February 2024 |archive-url=https://web.archive.org/web/20240227120923/https://www.indiatodaygroup.com/newsletter-subscription/widgets/display_form.php?key=8298b12532780b9268b7d968ac1ff5d0&luid=undefined&site=https://www.businesstoday.in/industry/banks/story/vijaya-bank-dena-bank-merger-bob-effective-april-1-share-exchange-plan-173365-2019-02-21 |url-status=live }}</ref>

====PNB====
On 30 August 2019, [[Minister of Finance (India)|Finance Minister]] announced that the [[Oriental Bank of Commerce]] and [[United Bank of India]] would be merged with [[Punjab National Bank]], making PNB the second largest PSB after SBI with assets of {{INRConvert|17.95|lc}} and 11,437 branches.<ref>{{cite news |title=Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low |url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |access-date=2 April 2020 |work=The Times of India |language=en |archive-date=30 August 2019 |archive-url=https://web.archive.org/web/20190830131147/https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |url-status=live }}</ref><ref name="livemint.com">{{cite web |author=Staff Writer |title=10 public sector banks to be merged into four |url=https://www.livemint.com/news/india/pnb-obc-and-united-bank-to-be-merged-nirmala-sitharaman-1567158678718.html |website=Mint |access-date=30 August 2019 |language=en |date=30 August 2019 |archive-date=8 October 2021 |archive-url=https://web.archive.org/web/20211008080913/https://www.livemint.com/news/india/pnb-obc-and-united-bank-to-be-merged-nirmala-sitharaman-1567158678718.html |url-status=live }}</ref> MD and CEO of UBI, Ashok Kumar Pradhan, stated that the merged entity would begin functioning from 1 April 2020.<ref>{{cite web |title=Merged entity of UBI, PNB, OBC to become operational from April 1, 2020 |url=https://www.businesstoday.in/sectors/banks/merged-entity-of-ubi-pnb-obc-to-become-operational-from-april-1-2020/story/379073.html |website=Business Today |date=14 September 2019 |access-date=14 September 2019 |archive-date=18 September 2019 |archive-url=https://web.archive.org/web/20190918000624/https://www.businesstoday.in/sectors/banks/merged-entity-of-ubi-pnb-obc-to-become-operational-from-april-1-2020/story/379073.html |url-status=live }}</ref><ref>{{cite web |title=Merged entity of UBI, PNB, OBC to become operational from 1 April next year |url=https://www.livemint.com/industry/banking/merged-entity-of-ubi-pnb-obc-to-become-operational-from-1-april-next-year-1568481571774.html |website=Mint |access-date=14 September 2019 |language=en |date=14 September 2019 |archive-date=21 September 2019 |archive-url=https://web.archive.org/web/20190921094911/https://www.livemint.com/industry/banking/merged-entity-of-ubi-pnb-obc-to-become-operational-from-1-april-next-year-1568481571774.html |url-status=live }}</ref> The Union Cabinet approved the merger on 4 March 2020. PNB announced that its board had approved the merger ratios the next day. Shareholders of OBC and UBI will receive 1,150 shares and 121 shares of Punjab National Bank, respectively, for every 1,000 shares they hold.<ref name="Three banks announce merger ratios">{{cite web |last1=Ghosh |first1=Shayan |title=Three banks announce merger ratios |url=https://www.livemint.com/market/stock-market-news/two-anchor-banks-pnb-union-bank-of-india-disclose-merger-ratios-11583413469591.html |website=Livemint |access-date=6 March 2020 |language=en |date=5 March 2020 |archive-date=7 March 2020 |archive-url=https://web.archive.org/web/20200307140419/https://www.livemint.com/market/stock-market-news/two-anchor-banks-pnb-union-bank-of-india-disclose-merger-ratios-11583413469591.html |url-status=live }}</ref>
The merge came into effect since 1 April 2020. Post merger, Punjab National Bank has become the second largest public sector bank in India<ref name="Merger">{{cite news |title=Merger of 10 public sector banks to come into effect from today: 10 points |url=https://www.livemint.com/industry/banking/merger-of-10-public-sector-banks-to-come-into-effect-from-today-10-points-11585632469446.html |access-date=2 April 2020 |work=Livemint |date=31 March 2020 |language=en |archive-date=4 April 2020 |archive-url=https://web.archive.org/web/20200404064519/https://www.livemint.com/industry/banking/merger-of-10-public-sector-banks-to-come-into-effect-from-today-10-points-11585632469446.html |url-status=live }}</ref>

====Canara Bank====
On 30 August 2019, [[Minister of Finance (India)|Finance Minister]] announced that [[Syndicate Bank]] would be merged with [[Canara Bank]]. The proposal would create the fourth largest PSB trailing SBI, PNB, BoB with assets of {{INRConvert|15.20|lc}} and 10,324 branches.<ref>{{cite news|title=Government unveils mega bank mergers to revive growth from 5-year low|url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms|access-date=30 August 2019|work=The Times of India|date=30 August 2019|archive-date=30 August 2019|archive-url=https://web.archive.org/web/20190830131147/https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms|url-status=live}}</ref><ref name="livemint.com"/> The Board of Directors of Canara Bank approved the merger on 13 September 2019.<ref>{{cite web |title=Canara Bank board gives approval for merger with Syndicate Bank |url=https://www.businesstoday.in/sectors/banks/canara-bank-board-gives-approval-for-merger-with-syndicate-bank/story/378909.html |website=Business Today |date=13 September 2019 |access-date=13 September 2019 |archive-date=14 September 2019 |archive-url=https://web.archive.org/web/20190914013202/https://www.businesstoday.in/sectors/banks/canara-bank-board-gives-approval-for-merger-with-syndicate-bank/story/378909.html |url-status=live }}</ref><ref>{{cite web |title=PSU Bank merger: Canara Bank board approves merger with Syndicate Bank; key things to know |url=https://www.financialexpress.com/industry/banking-finance/psu-bank-merger-canara-bank-board-approves-merger-with-syndicate-bank-key-things-to-know/1705359/ |website=The Financial Express |access-date=13 September 2019 |date=13 September 2019 |archive-date=16 September 2019 |archive-url=https://web.archive.org/web/20190916052825/https://www.financialexpress.com/industry/banking-finance/psu-bank-merger-canara-bank-board-approves-merger-with-syndicate-bank-key-things-to-know/1705359/ |url-status=live }}</ref> The Union Cabinet approved the merger on 4 March 2020. Canara Bank assumed control over Syndicate Bank on 1 April 2020 with Syndicate Bank shareholders receiving 158 equity shares in the former for every 1,000 shares they hold.<ref>{{cite news |last1=Reporter |first1=S. I. |title=Syndicate Bank, Oriental Bank gain on Cabinet nod for merger of 10 PSBs |url=https://www.business-standard.com/article/markets/select-psbs-gain-on-government-nod-for-merger-of-10-banks-into-4-120030500347_1.html |website=Business Standard India |access-date=6 March 2020 |date=5 March 2020 |archive-date=6 March 2020 |archive-url=https://web.archive.org/web/20200306155249/https://www.business-standard.com/article/markets/select-psbs-gain-on-government-nod-for-merger-of-10-banks-into-4-120030500347_1.html |url-status=live }}</ref>

====Union Bank of India====
On 30 August 2019, [[Minister of Finance (India)|Finance Minister]] announced that [[Andhra Bank]] and [[Corporation Bank]] would be merged into [[Union Bank of India]]. The proposal would make Union Bank of India the fifth largest PSB with assets of {{INRConvert|14.59|lc}} and 9,609 branches.<ref>{{cite news |title=Government unveils mega bank merger to revive growth from 5-year low |website=[[The Times of India]] |date=30 August 2019 |url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |access-date=30 August 2019 |archive-date=30 August 2019 |archive-url=https://web.archive.org/web/20190830131147/https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |url-status=live }}</ref><ref name="livemint.com"/> The Board of Directors of Andhra Bank approved the merger on 13 September.<ref>{{cite news |title=Andhra Bank board okays merger with UBI |url=https://www.thehindu.com/business/andhra-bank-board-okays-merger-with-ubi/article29411194.ece |website=The Hindu |access-date=13 September 2019 |language=en-IN |date=13 September 2019 |archive-date=19 July 2020 |archive-url=https://web.archive.org/web/20200719101800/https://www.thehindu.com/business/andhra-bank-board-okays-merger-with-ubi/article29411194.ece |url-status=live }}</ref><ref>{{cite news |title=Andhra Bank board okays merger with Union Bank of India |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/andhra-bank-board-okays-merger-with-union-bank-of-india/articleshow/71117490.cms |website=The Economic Times |access-date=13 September 2019 |date=13 September 2019 |archive-date=3 November 2019 |archive-url=https://web.archive.org/web/20191103072522/https://economictimes.indiatimes.com/industry/banking/finance/banking/andhra-bank-board-okays-merger-with-union-bank-of-india/articleshow/71117490.cms |url-status=live }}</ref> The [[Union Council of Ministers|Union Cabinet]] approved the merger on 4 March, and it was completed on 1 April 2020.<ref name="Three banks announce merger ratios"/>

====Indian Bank====
On 30 August 2019, [[Minister of Finance (India)|Finance Minister]] announced that [[Allahabad Bank]] would be merged with [[Indian Bank]]. The proposal would create the seventh largest PSB in the country with assets of {{INRConvert|8.08|lc}}.<ref name="The Times of India 2019">{{cite web | title=Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low - India Business News | website=The Times of India | date=30 August 2019 | url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms | access-date=13 June 2021 | archive-date=30 August 2019 | archive-url=https://web.archive.org/web/20190830131147/https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms | url-status=live }}</ref><ref name="livemint.com"/> The Union Cabinet approved the merger on 4 March 2020. Indian Bank assumed control of Allahabad Bank on 1 April 2020.<ref name="Three banks announce merger ratios"/>

=== Rescue and capital reorganisation of non PSU banks (2020s)===
{{Financial risk types}}

====Yes bank====
In April 2020, RBI enlisted SBI to rescue the troubled lender [[Yes Bank]], in the form of investment with assistance from other lenders viz., [[ICICI Bank]], [[HDFC Bank]] and [[Kotak Mahindra Bank]]. SBI went on to own 48% share capital of Yes bank, which it later diluted to 30% in an FPO in the following months.

====Lakshmi Vilas Bank====
In November 2020, RBI asked [[DBS Bank India]] Limited (DBIL) to take over the operations of the private sector bank [[Lakshmi Vilas Bank]] whose net worth has turned negative, following mismanagement and two failed merger attempts with [[NBFC]]s. DBS India's then having just 12 branches benefited by LVB's 559 branches. In a first of a kind move, Tier- II bond holders have been asked by RBI to write off their holdings in LVB.

====Punjab and Maharashtra Co-operative Bank====
In January 2022, RBI asked [[Unity Small Finance Bank]] Limited (Unity SFB) to take over the operations of the private sector bank [[Punjab and Maharashtra Co-operative Bank]] (PMC), following mismanagement and one failed merger attempts with [[NBFC]]/[[Small finance bank|SFBs]]. Unity SFB then was being created by Centrum Finance and payment provider [[BharatPe]] to absorb the liabilities of the scam hit bank. In a first of a kind move, RBI allowed an established cooperative bank to merge into a then being created SFB.

====HDFC Bank====
[[HDFC Bank]] sought permission from regulators to merge with its parent HDFC and merged. This led to a lot of probable capital holding violations for which the combined entity was given a year to bring under statutory limits. Before the merger, HDFC swapped its group company Gruh Finance to Bandhan bank for a 15% stake in its combined capital. In all this regard, the combined entity along with other group entities got permission to hold up to a maximum of 9.50% (up to 4.99% needs no permission) on six banks ( ICICI bank, Axis bank, Yes bank, Bandhan bank, IndusInd bank and Suryoday SFB). HDFC has 1 year till the permission lapses.

====Merger of SFBs====
In a first, RBI accepted October 2023 proposal of amalgamation of [[Fincare Small Finance Bank]] into [[AU Small Finance Bank]]. The combined entity to rename Fincare into AU from April 1, 2024 and the shareholders of Fincare to receive 579 AU shares for every 2000 shares held. This eliminates Fincare's regulatory need to be listed.

====Merger of DBU and SFB====
In a first, RBI accepted late 2023 proposal of acquisition of deeply Tier1 capital depleted and loss making SFB [[NE Small Finance Bank]] by a DBU, [[slice]] digital banking unit. slice already purchased 10 % (maximum allowed by RBI) of NE SFB in two tranches of 5% each in 2022 and 2023. The value of transaction is not announced.

===Regional rural banks revamp===
With a new policy effected in late 2010, the RRBs which served a smaller locality spanning a few districts, were merged into a state level entity following the merger of nationalised banks and their equity in RRBs getting sequentially higher. This eliminated the existential competition and cooperation between RRB's and essentially making them a subsidiary bank of the promoter nationalised bank with state equity.

===Co-op bank license cancellations===
In July 2024, RBI cancelled the licences of Durga Co-operative Urban Bank, Vijayawada; Banaras Mercantile Co-operative Bank, Banaras;  City Co-operative Bank, Mumbai; and Purvanchal Co-operative Bank in Ghazipur, Uttar Pradesh due to capital inadequacy and weaker earning prospects. Similarly, licences of Sumerpur Mercantile Urban Cooperative Bank, Jai Prakash Narayan Nagari Sahakari Bank, Shree Mahalaxmi Mercantile Co-operative Bank, and Hiriyur Urban Co-operative Bank have been cancelled from January 2024.<ref>{{cite web |title=RBI has cancelled licence of 7 co-operative banks since Jan: Here's why - CAalley.com |url=https://caalley.com/new-update/indian-news-listings/rbi-has-cancelled-licence-of-7-co-operative-banks-since-jan-heres-why |website=caalley.com |access-date=14 November 2024 |date=5 July 2024}}</ref>

==Current period==

{{Main|List of banks in India|l1=List of Banks in India}}

The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. All banks included in the Second Schedule to the [[Reserve Bank of India Act, 1934]] are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks.

In the bank group-wise classification, IDBI Bank Ltd. is included in the category of other public sector bank.
{| class="wikitable sortable"
|+ Growth of Banking in India of Scheduled Commercial Banks<ref name="rbiPublication20131121"/>
 ! rowspan="2"|Indicators
!! colspan="9"|31 March of
|-
 ! 2005 !! 2006 !! 2007 !! 2008 !! 2009 !! 2010 !! 2011 !! 2012 !! 2013
|-
| Number of Commercial Banks || align="right"|284 || align="right"|218 || align="right"|178 || align="right"|169 || align="right"|166 || align="right"|163 || align="right"|163 || align="right"|169 || align="right"|151
|-
| Number of Branches || align="right"|70,373 || align="right"|72,072 || align="right"|74,653 || align="right"|78,787 || align="right"|82,897 || align="right"|88,203 || align="right"|94,019 || align="right"|102,377 || align="right"|109,811
|-
| Population per Banks <small>(in thousands)</small> || align="right"|16 || align="right"|16 || align="right"|15 || align="right"|15 || align="right"|15 || align="right"|14 || align="right"|13 || align="right"|13 || align="right"|12
|-
| Aggregate Deposits || align="right"|{{INRconvert|17002|b}} || align="right"|{{INRconvert|21090|b}} || align="right"|{{INRconvert|26119|b}} || align="right"|{{INRconvert|31969|b}} || align="right"|{{INRconvert|38341|b}} || align="right"|{{INRconvert|44928|b}} || align="right"|{{INRconvert|52078|b}} || align="right"|{{INRconvert|59091|b}} || align="right"|{{INRconvert|67504.54|b}}
|-
| Bank Credit || align="right"|{{INRconvert|11004|b}} || align="right"|{{INRconvert|15071|b}} || align="right"|{{INRconvert|19312|b}} || align="right"|{{INRconvert|23619|b}} || align="right"|{{INRconvert|27755|b}} || align="right"|{{INRconvert|32448|b}} || align="right"|{{INRconvert|39421|b}} || align="right"|{{INRconvert|46119|b}} || align="right"|{{INRconvert|52605|b}}
|-
| Deposit as percentage to [[Gross national product|GNP]] <small>(at factor cost)</small> || align="right"|62% || align="right"|64% || align="right"|69% || align="right"|73% || align="right"|77% || align="right"|78% || align="right"|78% || align="right"|78% || align="right"|79%
|-
| Per Capita Deposit || align="right"|{{INRconvert|16281}} || align="right"|{{INRconvert|19130}} || align="right"|{{INRconvert|23382}} || align="right"|{{INRconvert|28610}} || align="right"|{{INRconvert|33919}} || align="right"|{{INRconvert|39107}} || align="right"|{{INRconvert|45505}} || align="right"|{{INRconvert|50183}} || align="right"|{{INRconvert|56380}}
|-
| Per Capita Credit || align="right"|{{INRconvert|10752}} || align="right"|{{INRconvert|13869}} || align="right"|{{INRconvert|17541}} || align="right"|{{INRconvert|21218}} || align="right"|{{INRconvert|24617}} || align="right"|{{INRconvert|28431}} || align="right"|{{INRconvert|34187}} || align="right"|{{INRconvert|38874}} || align="right"|{{INRconvert|44028}}
|-
| Credit Deposit Ratio || align="right"|63% || align="right"|70% || align="right"|74% || align="right"|75% || align="right"|74% || align="right"|74% || align="right"|76% || align="right"|79% || align="right"|79%
|}

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially [[retail banking]], mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed [[Warburg Pincus]] to increase its stake in [[Kotak Mahindra Bank]] (a private sector bank) to 10%. This was the first time an investor was allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.<ref>{{cite web |url=http://www.parinda.com/news/crime/20070918/2025/icici-personal-loan-customer-commits-suicide-after-alleged-harassment-recov |title=ICICI personal loan customer commits suicide after alleged harassment by recovery agents |publisher=Parinda.com |access-date=28 July 2010 |archive-url=https://web.archive.org/web/20100403062824/http://www.parinda.com/news/crime/20070918/2025/icici-personal-loan-customer-commits-suicide-after-alleged-harassment-recov |archive-date=3 April 2010 |url-status=dead }}</ref><ref>{{cite news |url=http://www.hindu.com/2008/06/30/stories/2008063057470300.htm |archive-url=https://web.archive.org/web/20080704005747/http://www.hindu.com/2008/06/30/stories/2008063057470300.htm |url-status=dead |archive-date=4 July 2008 |title=Karnataka / Mysore News: ICICI Bank returns tractor to farmer's mother |date= 30 June 2008 |access-date=28 July 2010 |work=[[The Hindu]] |location=Chennai, India}}</ref><ref>{{cite web|url=http://www.indiatime.com/2007/11/07/icicis-third-eye/ |title=ICICI's third eye: It's Indiatime |publisher=Indiatime.com |access-date=28 July 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100225120114/http://www.indiatime.com/2007/11/07/icicis-third-eye/ |archive-date=25 February 2010 }}</ref>

By 2013 the Indian Banking Industry employed 1,175,149 employees and had a total of 109,811 branches in India and 171 branches abroad and manages an aggregate deposit of {{INRconvert|67504.54|b|to=USD EUR}} and [[Credit (finance)|bank credit]] of {{INRconvert|52604.59|b|to=USD EUR}}. The net profit of the banks operating in India was {{INRconvert|1027.51|b|to=USD EUR}} against a turnover of {{INRconvert|9148.59|b|to=USD EUR}} for the [[financial year]] 2012–13.<ref name="rbiPublication20131121">{{cite web |url=http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0STR191113FL.pdf |title=Statistical Tables Related to Banks in India – Reserve Bank of India |access-date=25 February 2014 |archive-date=4 March 2014 |archive-url=https://web.archive.org/web/20140304013304/http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0STR191113FL.pdf |url-status=live }}</ref>

[[File:Pradhan Mantri Jan - Dhan Yojana (Accounts Opened As on 12.01.2015).png|thumb]]
[[Pradhan Mantri Jan Dhan Yojana]] ({{langx|hi|प्रधानमंत्री जन धन योजना}}, {{langx|en|Prime Minister's People Money Scheme}}) is a scheme for comprehensive [[financial inclusion]] launched by the [[Prime Minister of India]], [[Narendra Modi]], in 2014.<ref name="pib-en-109113">{{cite web | url=http://pib.nic.in/newsite/erelease.aspx?relid=109113 | title=Prime Minister to Launch Pradhan Mantri Jan Dhan Yojana Tomorrow | publisher=Press Information Bureau, Govt. of India | date=27 August 2014 | access-date=28 August 2014 | archive-date=3 September 2014 | archive-url=https://web.archive.org/web/20140903113011/http://pib.nic.in/newsite/erelease.aspx?relid=109113 | url-status=live }}</ref> Run by [[Ministry of Finance (India)#Department of Financial Services|Department of Financial Services]], [[Ministry of Finance (India)|Ministry of Finance]], on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme.<ref name="ET-28-aug-14">{{cite news | url=http://economictimes.indiatimes.com/news/economy/policy/pm-jan-dhan-yojana-launched-aims-to-open-1-5-crore-bank-accounts-on-first-day/articleshow/41093413.cms | title=PM 'Jan Dhan' Yojana launched; aims to open 1.5 crore bank accounts on first day | newspaper=The Economic Times | date=28 August 2014 | access-date=28 August 2014 | author=ET Bureau | archive-date=30 December 2016 | archive-url=https://web.archive.org/web/20161230212656/http://economictimes.indiatimes.com/news/economy/policy/pm-jan-dhan-yojana-launched-aims-to-open-1-5-crore-bank-accounts-on-first-day/articleshow/41093413.cms | url-status=live }}</ref><ref name="Reuters-28-aug-14">{{cite web | url=http://in.reuters.com/article/india-modi-banks-idINKBN0GS1P320140828 | title=Modi: Banking for all to end "financial untouchability" | work=Reuters | date=28 August 2014 | access-date=29 August 2014 | archive-date=10 January 2016 | archive-url=https://web.archive.org/web/20160110170747/http://in.reuters.com/article/india-modi-banks-idINKBN0GS1P320140828 | url-status=dead }}</ref> By 15 July 2015, 16.92 crore (169.2 [[million]]) accounts were opened, with around {{INR Convert|20288.37|c}} were deposited under the scheme,<ref>{{Cite web |url=http://pmjdy.gov.in/account-statistics-country.aspx |title=Pradhan Mantri Jan-Dhan Yojana &#124; Department of Financial Services &#124; Ministry of Finance |access-date=23 July 2015 |archive-url=https://web.archive.org/web/20150723175356/http://pmjdy.gov.in/account-statistics-country.aspx |archive-date=23 July 2015 |url-status=dead }}</ref> which also has an option for opening new bank accounts with zero balance.

=== Payment Banks ===

[[Payments bank]] is a new model of banks conceptualized by the [[Reserve Bank of India]] (RBI). These banks can accept a restricted deposit, which is currently limited to [[₹]]2 lakh per customer. These banks may not issue loans or credit cards, but may offer both current and savings accounts. Payments banks may issue ATM and debit cards, and offer net-banking and mobile-banking. The draft guidelines for licensing of payments banks in the private sector were formulated and released for public comments on 17 July 2014.<ref>{{Cite web|url=https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31646|title=Reserve Bank of India - Press Releases|access-date=19 May 2020|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414103533/https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31646|url-status=live}}</ref> The banks will be licensed as payments banks under Section 22 of the [[Banking Regulation Act, 1949]], and will be registered as [[public limited company]] under the [[Companies Act, 2013]].<ref>{{Cite web|url=http://www.forbesindia.com/article/special/you-cant-have-a-21st-century-india-with-19th-century-institutions-amitabh-kant/47241/1|title=You can't have a 21st century India with 19th century institutions: Amitabh Kant {{!}} Forbes India|website=Forbes India|language=en-US|access-date=2017-06-24|archive-date=20 June 2017|archive-url=https://web.archive.org/web/20170620004504/http://www.forbesindia.com/article/special/you-cant-have-a-21st-century-india-with-19th-century-institutions-amitabh-kant/47241/1|url-status=live}}
{{!}}</ref>

=== Small finance banks ===
{{Main|Small finance bank}}
To further the objective of financial inclusion, the RBI granted approval in 2016 to ten entities to set up small finance banks. Since then, all ten have received the necessary licenses. A small finance bank is a niche type of bank to cater to the needs of people who traditionally have not used scheduled banks. Each of these banks is to open at least 25% of its branches in areas that do not have any other bank branches (unbanked regions). A small finance bank should hold 75% of its net credits in loans to firms in priority sector lending, and 50% of the loans in its portfolio must be less than {{currency|25|INR}} lakh (US${{To USD|2500|IND|round=yes}},000).<ref name="RBIabout_PrivateIndian">{{Cite web|title=Financial Intermediaries Private – Indian Banks|url=https://www.rbi.org.in/Scripts/AboutUsDisplay.aspx?pg=Indian.htm|access-date=2019-09-06|website=Reserve Bank of India|series=About Us|archive-date=16 September 2018|archive-url=https://web.archive.org/web/20180916093139/https://www.rbi.org.in/Scripts/AboutUsDisplay.aspx?pg=Indian.htm|url-status=live}}</ref>

== Banking codes and standards ==
{{Main|Banking Codes and Standards Board of India|l1=The Banking codes and standards Board of India}}

The Banking Codes and standards Board of India is an independent and autonomous banking industry body that monitors banks in India.To improve the quality of banking services in India S S Tarapore (former deputy governor of RBI) had the idea to form this committee.

==Data Breaches==

===2016 Indian Banks data breach===
{{main|2016 Indian Banks data breach}}
A huge data breach on debit cards issued by various Indian banks was reported in October 2016. It was estimated 3.2 million debit cards were compromised. Major Indian banks- [[State Bank of India|SBI]], [[HDFC Bank]], [[ICICI]], [[Yes Bank]] and [[Axis Bank]] were among the worst hit.<ref name="et-20oct2016">{{cite news | url=http://economictimes.indiatimes.com/industry/banking/finance/banking/3-2-million-debit-cards-compromised-sbi-hdfc-bank-icici-yes-bank-and-axis-worst-hit/articleshow/54945561.cms | title=3.2 million debit cards compromised; SBI, HDFC Bank, ICICI, YES Bank and Axis worst hit | newspaper=The Economic Times | date=20 October 2016 | access-date=20 October 2016 | last1=Shukla | first1=Saloni | last2=Bhakta | first2=Pratik | archive-date=22 October 2016 | archive-url=https://web.archive.org/web/20161022135805/http://economictimes.indiatimes.com/industry/banking/finance/banking/3-2-million-debit-cards-compromised-sbi-hdfc-bank-icici-yes-bank-and-axis-worst-hit/articleshow/54945561.cms | url-status=live }}</ref> Many users reported unauthorised use of their cards in locations in [[China]]. This resulted in one of the India's biggest card replacement drive in banking history. The biggest Indian bank State Bank of India announced the blocking and replacement of almost 600,000 debit cards.<ref name="et-2">{{cite news | url=http://economictimes.indiatimes.com/industry/banking/finance/banking/security-breach-sbi-blocks-over-6-lakh-debit-cards/articleshow/54933861.cms | title=Security breach: SBI blocks over 6 lakh debit cards | newspaper=The Economic Times | date=20 October 2016 | access-date=20 October 2016 | last1=Iyer | first1=Satyanarayan | archive-date=23 October 2016 | archive-url=https://web.archive.org/web/20161023182400/http://economictimes.indiatimes.com/industry/banking/finance/banking/security-breach-sbi-blocks-over-6-lakh-debit-cards/articleshow/54933861.cms | url-status=live }}</ref>

==See also==
{{Portal|Banks}}
* [[History of banking]]
* [[Institute of Banking Personnel Selection]]
* [[Indian rupee|Indian Rupee]]
* [[Private-sector banks in India]]
* [[Public sector banks in India]]

==References==
{{reflist|2}}

==Further reading==
{{Refbegin|30em}}
* Banking Frontiers magazine, being published since 2002
* ''The Evolution of the State Bank of India (The Era of the Imperial Bank of India, 1921–1955)'' (Volume III)
* Deb, M. and Lomo-David, E. (2014), "An empirical examination of customers’ adoption of m-banking in India", Marketing Intelligence & Planning, Vol. 32 No. 4, pp.&nbsp;475–494. {{doi|10.1108/MIP-07-2013-0119}} 
* {{cite book|title=Barons of Banking|author=Dadabhoy, B.|isbn=9788184004762|year=2013|publisher=Random House Publishers India Pvt. Limited}}
* {{cite book|title=From Lehman to Demonetization|author=Bandyopadhyay, T.|isbn=9789387326392|year=2017|publisher=Penguin Random House India Private Limited }} 
* {{cite book|title=Banking in India: Past, Present and Future|author=Shahi, U. and Sinha, U.K.|isbn=9788177083347|lccn=2013478080|year=2013|publisher=New Century Publications }}
* {{cite book|title=The Sociology of Greed: Runs and Ruins in Banking Crises|author=Ray, P.|isbn=9780429016585|year=2018|publisher=[[Taylor & Francis]] }}
* {{cite book|title=Banking System in India: Reforms and Performance Evaluation|author=Akhtar, S.M.J. and Alam, M.S.|isbn=9788177082838|lccn=2011410415|year=2011| publisher=New Century Publications}} 
* {{cite book|title=Pandemonium: The Great Indian Banking Tragedy|author=Bandyopadhyay, T.|isbn=9788194643364|year=2020|publisher=Roli Books}} 
* {{cite book|title=Shadow Banking in India. An Analytical Study|author=Panchasara, B. and Bharadia, H.|isbn=9783668704657|year=2018|publisher=GRIN Verlag}}
* {{cite book|title=Bad Money: Inside the NPA Mess and How It Threatens the Indian Banking System|author=Kaul, V.|isbn=9789353577223|lccn=2020341953|year=2020|
  publisher=HarperBusiness}}
* {{cite book| title=Credit Risk Management for Indian Banks|author=Vaidyanathan, K.|isbn=9788132111023|lccn=2013016475|year=2013|publisher=SAGE Publications}}
* Dhameja, N. L., & Arora, S. (2020). Banking in India: Evolution, Performance, Growth and Future. Indian Journal of Public Administration, 66(3), 312–326. {{doi|10.1177/0019556120953711}} 
* {{cite book|title=The Rise, Progress, and Present Condition of Banking in India|author=Cooke, C.N.|url=https://books.google.com/books?id=HBAZAAAAYAAJ|year=1863|publisher=P.M. Cranenburgh, Bengal Print. Company|access-date=4 February 2024|archive-date=27 February 2024|archive-url=https://web.archive.org/web/20240227121001/https://books.google.com/books?id=HBAZAAAAYAAJ|url-status=live}} 
* Singh, S. and Srivastava, R.K. (2018), "Predicting the intention to use mobile banking in India", International Journal of Bank Marketing, Vol. 36 No. 2, pp.&nbsp;357–378. {{doi|10.1108/IJBM-12-2016-0186}} 
* Chakrabarti, Rajesh, Banking in India - Reforms and Reorganization (January 17, 2005). Available at {{SSRN|649855}} or {{doi|10.2139/ssrn.649855}} 
* Gupta, Pankaj Kumar, Internet Banking in India – Consumer Concerns and Bank Strategies (2008). Global Journal of Business Research, Vol. 2, No. 1, pp.&nbsp;43–51, 2008, Available at {{SSRN|1543420}} 
* {{cite book|title=Indian Banking|author=Parameswaran, R.|isbn=9788121920377|url=|year=2001|publisher=S. Chand Limited }}
* {{cite book|title=Evolution of Banking System in India since 1900|author=Chawla, O.P.|isbn=9789353284671|lccn=2019347769|url=|year=2019|publisher=SAGE Publications}} 
* {{cite book|title=Rural Banking in India|author=Chakrabarti, M.|isbn=9788177082623|lccn=2011411150|url=|year=2011|publisher=New Century}} 
* {{cite book|title=Money & Banking : Theory with Indian Banking|author=N, H.T.|isbn=9788180521348|url=|year=2009|publisher=Ane Books India}} 
* {{cite book|title={Inclusive Banking In India: Re-imagining The Bank Business Model|author=Kulkarni, L. and Joshi, V.C.|isbn=9789813367975|url=|year=2021|publisher=Springer Nature Singapore}} 
* {{cite book|title=Monetary Policy, Financial Stability, and Central Banking in India|author=Jadhav, N.|isbn=9781403929020|lccn=2006348548|url=|year=2006|publisher=Macmillan India}} 
* {{cite book|title=Contemporary Issues in Banking: Regulation, Governance and Performance|author=García-Olalla, M. and Clifton, J.|isbn=9783319902944|series=Palgrave Macmillan Studies in Banking and Financial Institutions|url=|year=2018|publisher=Springer International Publishing}}
* {{cite book|title={Banking Reforms in India: Consolidation, Restructuring and Performance|author=Bishnoi, T.R. and Devi, S.|isbn=9783319556635|series=Palgrave Macmillan Studies in Banking and Financial Institutions|url=|year=2017|publisher=Springer International Publishing}}
{{refend}}

==External links==
*[http://www.rbi.org.in/ Reserve Bank of India] {{Webarchive|url=https://web.archive.org/web/20101219113959/http://rbi.org.in/ |date=19 December 2010 }}

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