Consider the following events 1 Reserve Bank ...........

Economic Affairs Types of Banks and Banking

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Consider the following events:

1. Reserve Bank of India (RBI) was established with its headquarters at Mumbai

2. State Bank of India was nationalized.

3. Merger of associate banks with the State Bank of India (SBI)

4. Enactment of Banking Regulation Act

Which of the following is the chronological sequence of the above events?

1-4-2-3

1-2-4-3

4-1-2-3

3-1-2-4

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Explanation:

Reserve Bank of India (RBI) was established with its headquarters at Mumbai in 1935. Sir Osborne Smith the first Governor of the Bank.The Bank was constituted as a shareholders bank. The banking system in India is regulated by the Reserve Bank of India (RBI), through the provisions of the Banking Regulation Act, 1949. This formed the statutory basis of bank supervision and regulation in India. The Statutory Liquidity Ratio (SLR) requiring banks to maintain liquid assets was introduced for the first time. The Banking Companies Act was later renamed the Banking Regulation Act.

State Bank of India was nationalized in 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960. In 2017 five associates and the Bharatiya Mahila Bank became part of the State Bank of India (SBI). State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT), besides Bharatiya Mahila Bank (BMB), merged with SBI with effect from April 1. Recently the Reserve Bank of India (RBI) said that it will examine the merger proposal of Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd. The Tamil Nadu based private sector lender Lakshmi Vilas Bank (LVB) recently announced it will merge with Indiabulls Housing Finance (IBHFL) to create the eighth largest private sector lender in an all-stock deal.