The three presidency banks were amalgamated into the imperial bank of India which was bought into existence on 27th January 1921, by the imperial bank of India act 1920.
The liability of shareholders of the imperial bank was not unlimited like that of shareholders of any other banks registered under the company act. However, the word ” Limited” didn’t form a part of the name of the bank.
The imperial bank work for both central and commercial banking businesses. The major banking functions discharged by the bank before the establishment of the Reserve Bank of India were as follows :
A) It worked as the sole ‘banker’ to the Government and as the custodian of public funds and government cash balances.
B) It managed the public debt of the government and provided the machinery for the issue of government securities.
C) It acted as a banker’s bank.
D) It acted as an exchange bank and promoted foreign trade.
In addition to these central Banking functions, the imperial bank performed commercial business such as –
1) Accepting deposits: It accepts deposits from the public as saving, fixed and current deposit.
2) Making loans and advances: Imperial bank makes loans and advances to its customers. There are three types of loans: Loans, Overdraft, cash credit.
C) Remitting funds from one place to another place: Imperial bank also helps its customers by transferring funds from one place to another or electronic fund transfer.
D) Providing safe custody of valuables: Imperial bank also provide safe custody for keeping valuable things.
Nationalization Of the Imperial Bank of India:
After independence, there was a strong demand for the nationalization of the imperial bank. The management of the bank was in the hands of a few people who discriminated in favour of the European companies.
The rural credit survey committee recommended the nationalization of the imperial bank of India.
In pursuance of these recommendations, the government of India nationalized the Imperial Bank of India and renamed it as the state bank of India on July 1, 1955.
How imperial banks become a state bank of India?
There was a strong demand for the establishment of a Separate central bank in India during the first part of the 20th century.
Though the imperial bank undertook some central banking functions, it could not fully satisfy the demand for a central bank. The Hilton Young commission in 1926 recommended the setting up of the reserve bank of India as a full-fledged Central Bank of the country.
Accordingly, in 1934 an Act was passed (Reserve Bank of India act 1934) and under this act, The Reserve Bank of India was set up in 1935.
It took over all the Central banking functions from the imperial bank and the Imperial bank was authorized to act as the agent of the reserve bank.
Where is the headquarter of the imperial bank?
Which bank is called the imperial bank of India?
Ans: State bank of India is now Called the Imperial bank of India.
Which is the first bank in India?
Ans: The first bank of India is Bank of Hindustan which was founded in the year 1770 and it was closed in the year 1830.
When was Bank of Calcutta Established?
Ans: Bank of Calcutta was established in the year 1806 and it renamed as Bank of Bengal. It was established in Kolkata.
Who was the founder of the Imperial bank?
Ans: The founder of the Imperial bank was John Maynard Keynes.
When Bank of Bombay was founded?
Ans: Bank of Bombay was founded in the year 1840.
When Bank of Madras was founded?
Ans: Bank of Madras was founded in the year 1843.