BANKING AFFAIRS

Detailed explanation-1: -The Government of India took control of the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake and renamed it as the State Bank of India. The Act was given President’s assent on May 8, 1955 and came into force on July 1, 1955.

Detailed explanation-2: -An Act to constitute a State Bank for India, to transfer to it the undertaking of the Imperial Bank of India and to provide for other matters connected therewith or incidental thereto.

Detailed explanation-3: -The All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India. Thus, an act was passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955.

Detailed explanation-4: -Hali Sicca Rupees which had a circulation of about OS 48 crores ceased to be legal tender in the erstwhile Hyderabad State. These were replaced by Indian Rupees. Imperial Bank of India converted to a state owned institution, State Bank of India on July 1, 1955.

Detailed explanation-5: -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.