BANKING AFFAIRS

Detailed explanation-1: -The creation of the State Bank of India in July 1955 followed the passage of the Imperial Bank of India into state ownership. The nationalization of the Imperial Bank represented the culmination of a protracted debate on its role in independent India.

Detailed explanation-2: -Initially, the State Bank of India was a private bank known as the Imperial Bank. In 1955, it was renamed as the State Bank of India and converted to a public sector bank.

Detailed explanation-3: -During the British rule in India, The East India Company had established three banks: Bank of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks. These three banks were later merged into one single bank in 1921, which was called the “Imperial Bank of India.”

Detailed explanation-4: -In accordance with a law approved on Sep-tember 19, 1920, the Imperial Bank of India began operations on January 27 of this year. This bank represents a consolidation of the presidency banks of Bengal, Bombay, and Madras, which have been doing business in India since the beginning of the nineteenth century.

Detailed explanation-5: -Imperial Bank of India converted to a state owned institution, State Bank of India on July 1, 1955.