History of Banking — Set 1
Banking · बैंकिंग का इतिहास · Questions 1–10 of 60
Which was the first bank to be established in India in 1770?
Correct Answer: C. Bank of Hindustan
The Bank of Hindustan was the first bank established in India in 1770 at Calcutta. It was established by the agency house of Alexander and Company. Although it operated for several decades, it eventually ceased operations in the 1830s.
In which year was the first Presidency Bank, the Bank of Bengal, established?
Correct Answer: C. 1806
The Bank of Bengal was established in 1806 originally as the Bank of Calcutta. It received its charter and was renamed the Bank of Bengal in 1809. It was the first of the three Presidency Banks founded under the British East India Company.
The Imperial Bank of India was formed in 1921 by merging which three banks?
Correct Answer: B. Bank of Bengal, Bank of Bombay, and Bank of Madras
The Imperial Bank of India was created in 1921 through the amalgamation of the three Presidency Banks. These were the Bank of Bengal, Bank of Bombay, and Bank of Madras. It functioned as a semi-central bank until the creation of the Reserve Bank of India.
Which was the first bank with limited liability managed by an Indian board?
Correct Answer: D. Oudh Commercial Bank
Oudh Commercial Bank, established in 1881 at Faizabad, was the first bank with limited liability managed by an Indian board. It was a small bank that primarily served local needs and had no branches. It failed in 1958 after decades of operation.
Who is considered the founder of the Punjab National Bank, established in 1894?
Correct Answer: B. Lala Lajpat Rai
Lala Lajpat Rai was the primary founder of the Punjab National Bank which started operations in Lahore. It was the first bank to be managed solely by Indians with Indian capital. Today, it remains one of the largest public sector banks in India.
Which bank was established in 1911 and is known as the first Indian commercial bank wholly owned and managed by Indians?
Correct Answer: A. Central Bank of India
The Central Bank of India was founded by Sir Sorabji Pochkhanawala in 1911. It is often called the first truly 'Swadeshi' bank because it was wholly owned and managed by Indians from its inception. Pherozeshah Mehta was the first chairman of this prestigious institution.
On the recommendation of which commission was the Reserve Bank of India (RBI) established?
Correct Answer: D. Hilton Young Commission
The Hilton Young Commission, also known as the Royal Commission on Indian Currency and Finance, recommended the creation of a central bank in 1926. This led to the passing of the RBI Act in 1934. The bank finally commenced operations on April 1, 1935.
In which year was the Reserve Bank of India nationalized?
Correct Answer: A. 1949
The Reserve Bank of India was nationalized on January 1, 1949, under the RBI (Transfer to Public Ownership) Act, 1948. Before this, it was a shareholders' bank with private ownership. Nationalization ensured that the central bank functioned solely in the interest of the sovereign state.
The Imperial Bank of India was renamed as the State Bank of India in which year?
Correct Answer: B. 1955
The State Bank of India was created on July 1, 1955, following the nationalization of the Imperial Bank of India. This was done based on the recommendations of the All India Rural Credit Survey Committee. It was intended to expand banking facilities into rural and semi-urban areas.
How many major commercial banks were nationalized by the Government of India in July 1969?
Correct Answer: D. 14
The government nationalized 14 major commercial banks on July 19, 1969, during the tenure of Prime Minister Indira Gandhi. These banks held deposits of more than ₹50 crores each at that time. The primary objective was to divert credit to priority sectors like agriculture and small industries.