History of Banking in India Research Paper by - Tariq Mumtaz

The Beginning The English traders that came to India in the 17th century could not make much u se of the indigenous bankers, owing to their ignorance of the language as well t he inexperience indigenous people of the European trade. Therefore, the English Agency 1 Houses in Calcutta and Bombay began to conduct banking business, beside s their commercial business, based on unlimited liability. The Europeans with ap titude of commercial pursuit, who resigned from civil and military, organized th ese agency houses. A type of business organisation recognizable as managing agen cy took form in a period from 1834 to 1847. The primary concern of these agency houses was trade, but they branched out into banking as a sideline to facilitate the operations of their main business. The English agency houses, that began to serve as bankers to the East India Company had no capital of their own, and dep ended on deposits for their funds. They financed movements of crops, issued pape r money and established joint stock banks. Earliest of these was Hindusthan Bank , established by one of the agency houses in Calcutta in 1770. Banking in India originated in the last decades of the 18th century. The first bank in India, tho ugh conservative, was established in 1786 in Calcutta by the name of bank of Ben gal. Indian banking system, over the years has gone through various phases. For ease of study and understanding it can be broken into four phases These phases are based upon personal study and understanding and many experts ma y ir may not agree this chronological segmentation. Prof K.V. Bhanu Murthy 2 has also segregates the Indian banking periods into four eras. These are 1. Early h istorical and formative era: 1770-1905 2. Pre-independence era: 1906-1946 3. Pos t independence regulated era: 1947-1993 4. Post independence deregulated era fro m 1993 onwards 1 A type of business organization recognizable as managing agency took form in a period from 1834 to 1847. Managing agency system came into existence when an ag ency house first promoted and acquired the management of a company. This system, with no counterpart in any other country functioned as an Indian substitute for a well-organized capital market and an industrial banking system of western cou ntries. 2 Professor in Department of Commerce, Delhi School of Economics 1

Early Phase (1786 to 1935) Banking in India originated in the last decades of the 18th century. The first b anks were The General Bank of India, which started in 1786, and the Bank of Hind ustan, both of which are now defunct. The oldest bank in existence in India is t he State Bank of India, which originated in the Bank of Calcutta in June 1806, w hich almost immediately became the Bank of Bengal. This was one of the three pre sidency banks, the other two being the Bank of Bombay and the Bank of Madras, al l three of which were established under charters from the British East India Com pany. For many years the Presidency banks acted as quasi-central banks, as did t heir successors. The East India Company established Bank of Bengal, Bank of Bomb ay and Bank of Madras as independent units and called it Presidency Banks. The t hree banks merged in 1925 to form the Imperial Bank of India, which, upon India' s independence, became the State Bank of India. Foreign banks too started to arr ive, particularly in Calcutta, in the 1860s. The Comptoire d Escompte de Paris opene d a branch in Calcutta in 1860 and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Beng al in 1869. Calcutta was the most active trading port in India, mainly due to th e trade of the British Empire, and so became a banking center. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 because of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and sti ll functioning today, is the oldest Joint Stock bank in India. Joint Stock Banks American Civil War played a major role in the development of banking in India. T he next big thing unfolded in the early phase of banking was formation of joint stock companies, with limited liability. The American Civil War cut off the supp ly of American cotton to England caused an unprecedented boom in India s cotton trad e with England. The first joint stock bank was Bank of Upper India, which was es tablished in 1863, and which survived until 1913, when it failed, with some of i ts assets and liabilities being transferred to the Alliance Bank of Shimla. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India Stability & Growth Around the turn of the 20th Century, the Indian economy was passing through a re lative period of stability. Around five decades had elapsed since the Indian Mut iny, and the social, industrial and other infrastructure had improved. Indians h ad established small banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchang e banks and a number of Indian joint stock banks. All these banks operated in di fferent segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the pr esidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fa shioned sailing ship, divided by solid wooden bulkheads into separate and cumber some compartments." Swadeshi Movement The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have s urvived to the present such as Bank of India, Corporation Bank, Indian Bank, Ban k of Baroda, Canara Bank and Central Bank of India. Ammembal Subba Rao Pai found ed Canara Bank Hindu Permanent Fund in 1906. Central Bank of India was established in 1911 by Sir Sorabji Pochkhanawala and was the first commercial Indian bank compl etely owned and managed by Indians. In 1923, it acquired the Tata Industrial Ban k. The fervor of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara (South Kanara ) district. Four nationalized banks started in this district and also a leading private sector bank. Hence, undivided Dakshina Kannada district is known as "Cradle of Indian Banking". Banks with Year of Start Bank of Bengal Bank of Bombay Bank of Madras Allahabad Bank Punjab National Bank Ltd. Canara Bank Indian Bank Bank of Baroda Central Bank of India Bank of Mysor e Union Bank if India 1809 1840 1843 1865 1894 1906 1907 1908 1911 1913 1922

Failures in Early Phase During the first phase, the growth was very slow and banks experienced periodic failures during the Early Phase between. There were approximately 1100 banks, mo stly small which failed within the early phase The first major bank failure took place in 1791, when General Bank of India was voluntarily liquidated, due to in ability to earn profits following the currency difficulties in 1787. Bengal Bank failed around 1791, due to a run on it caused by emergence of difficulties of a related firm. A large number 14 of banks failed within a short time, and public confidence in banks was destroyed. The currency confusion during 1873-1893 caus ed trade uncertainties and also played its role in creating an atmosphere unfavo rable to establishment of new banks. Due to war and uncertainty in Europe let to speculative activity, which eventually caused bank failures. The depositors los t money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades unt il the beginning of the 20th century. Development of banking, during this period , was mostly because very deregulated (laissez faire policy). This also played a major role in failures. The deficiency of capital made newly established banks almost wholly dependent on deposits. Keen rivalry among them to attract deposits led to luring of depositors, with rates of interest much higher than they could really afford. During 1913, Indian Companies Act 3 was passed. It contained a f ew sections related to joint sector banks. While this act is significant, being the first legislation related to banks, it was not adequate for regulation of ba nking activity. Many banks were left altogether free from regulation. The boom d uring the later part of World War I and after it gave another impetus to the sta rting of new banks. A number of banks were established, some specially for finan cing industries. But from 1922, the bank failures increased once again due to ec onomic depression 3 http://www.vakilno1.com/bareacts/companiesact/s3.htm

Pre Nationalization Phase (1935 to 1969) Organized banking in India is more than two centuries old. Until 1935 all, the b anks were in private sector and were set up by individuals and/or industrial hou ses, which collected deposits from individuals and used them for their own purpo ses. In the absence of any regulatory framework, these private owners of banks w ere at liberty to use the funds in any manner, they deemed appropriate and resul tantly, the bank failures were frequent. For many years the Presidency banks act ed as quasicentral banks, as did their successors. Bank of Bengal, Bank of Bomba y and Bank of Madras merged in 1925 to form the Imperial Bank of India, which, u pon India's independence, became the State Bank of India. Even though consolidat ion in banking was building trust among the investors but a central regulatory, authority was much needed. British Government in India passed many trade and com merce laws but acted little on regulating the banking industry. Reserve Bank of India Another breakthrough happened in this phase, which was Reserve Bank of India. Th e Reserve Bank of India was set up on the recommendations Royal Commission on In dian Currency and Finance 4 also known as the Hilton-Young Commission. The commi ssion submitted its report in the year 1926, though the bank was not set up for nine years. Reserve Bank of India (RBI) was created with the central task of mai ntaining monetary stability in India. The Government on December 20, 1934 issued a notification and on January 14, 1935, the RBI came into existence, though it was formally inaugurated only on April 1, 1935. Main functions of RBI were 1. Re gulate the issue of banknotes 2. Maintain reserves with a view to securing monet ary stability and 3. To operate the credit and currency system of the country to its advantage The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India. Offices of the Banking Department were established in Ca lcutta, Bombay, Madras, Delhi and Rangoon. Burma (Myanmar) seceded from the Indi an Union in 1937 but the Reserve Bank continued to act as the Central Bank for B urma until Japanese Occupation of Burma and later unto April 1947. After the par tition of India, the Reserve Bank served as the central bank of Pakistan up to J une 1948 when the State Bank of Pakistan commenced operations. 4 http://hansard.millbanksystems.com/lords/1926/nov/18/indian-currency-and-finance

India Wins Freedom I think the second milestone in history of Indian banking was India becoming a s overeign republic. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution ad opted by the government in 1948 envisaged a mixed economy 5 . This resulted into greater involvement of the state in different segments of the economy including banking and finance. The banking sector also witnessed the benefits; Government took major steps in this Indian Banking Sector Reform after independence. First major step in this direction was nationalized of Reserve Bank in 1949. Enactmen t of Banking Regulation Act in 1949 6 Reserve Bank of India Scheduled Banks' Reg ulations, 1951. Nationalization of Imperial Bank of India in 1955, with extensiv e banking facilities on a large scale especially in rural and semi-urban areas. Nationalization of SBI subsidiaries in 1959 Government of India took many bankin g initiatives. These were aimed to provide banking coverage to all section of th e society and every sector of the economy. 1955 The Industrial Credit and Invest ment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing med ium-term and long-term project financing to Indian businesses. Industrial Develo pment Bank of India Limited (IDBI) was established in 1964 by an Act of Parliame nt to provide credit and other facilities for the development of the fledgling I ndian industry. Some of the institutions built by IDBI are The National Stock Ex change of India (NSE), The National Securities Depository Services Ltd. (NSDL) a nd the Stock Holding Corporation of India (SHCIL) IDBI BANK, as a private bank a fter government policy for new generation private banks. This phase of Indian ba nking was eventful and was a phase of restructuring, regulation. However, despit e these provisions, control and regulations, banks in India except the State Ban k of India, continued to be owned and operated by private persons. 5 6 http://en.wikipedia.org/wiki/Mixed_economy http://www.bankingindiaupdate.com/bra .html

Post Nationalization Phase (1969 to 1990) I think nationalization 7 of banks in India was an important phenomenon. On July 19, 1969 - the erstwhile government of India nationalized 14 major private bank s. Nationalization of bank in India was not new or happening first time. From 19 55 to 1960, State Bank of India and other seven subsidiaries were nationalized u nder the SBI Act of 1955. List of Nationalized Banks in 1969 1 2 3 4 5 6 7 Central Bank of India Bank of Maharashtra Dena Bank Punjab Nationa l Bank Syndicate Bank Canara Bank Indian Bank 8 9 10 11 12 13 14 Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Ban k of India It was not a step taken at random or because of the whims of the leadership of t he time, but reflected a process of struggle and political change which had made this an important demand of the people. Nationalisation took place in two phase s, with a first round in 1969 covering 14 banks followed by another in 1980 cove ring seven banks. Currently there are 27 nationalized commercial banks. Reasons for Nationalization 1. The need for the nationalization was felt mainly because private commercial b anks were not fulfilling the social and developmental goals of banking, which ar e so essential for any industrializing country. Despite the enactment of the Ban king Regulation Act in 1949 and the nationalization of the largest bank, the Sta te Bank of India, in 1955, the expansion of commercial banking had largely exclu ded rural areas and small-scale borrowers. 2. The developmental goals of financi al intermediation were not being achieved other than for some favored large indu stries and established business houses. Whereas industry s share in credit disbursed by commercial banks almost doubled between 1951 and 1968, from 34 per cent to 6 8 per cent, agriculture received less than 2 per cent of total credit. 3. The st ated purpose of bank nationalization was to ensure that credit allocation occur in accordance with plan priorities. 4. Reduce the hold of moneylenders and make more funds available for agricultural development. Nationalization of bank was t o actively involve in poverty alleviation and employment generation programs. What is Nationalization: Nationalization, also spelled nationalisation, is the a ct of taking an industry or assets into the public ownership of a national gover nment or state. Nationalization usually refers to private assets, but may also m ean assets owned by lower levels of government, such as municipalities, being st ate operated or owned by the state. The opposite of nationalization is usually p rivatization or de-nationalization. The motives for nationalization are politica l as well as economic. 7

Advantages of Nationalization 1. Nationalized banks had to provide 18 per cent of their net credit to the agri cultural sectors. This was targeted to reduce the hold of moneylenders and make more funds available for agricultural development. This has substantially helped farmers. 2. The reach of banking widened; the entry barriers that existed for c ustomers to bank, social economic and political were lowered. This resulted in a massive quantitative expansion of the bank customer base as well as in the natu re of services provided. Absence of concern for profitability and targeting made banks to expand rapidly in un-banked areas thereby the entire country was linke d to banking activity. 3. Enhanced bank credit to the farm sector became instrum ental for the success of green revolution and the increase of aggregate food gra in production in north and northwest India in the 1970s and in the eastern regio n in the 1980s. 4. Increase in exports by small-scale manufacturers over the 198 0s and 1990s, such that they accounted for around two-third of the total value o f all exports, was strongly related to access to bank credit provided by priorit y sector norms. 5. Collection of saving: Private banks were not that good in att racting more saving. However, with nationalization banks were now backed by Gove rnment of India, which tremendously improved their credibility. This helped in m ore deposits, more savings hence more supply of money. Disadvantages of Nationalization 1. State intervention to some extent distorted the banking sector. The dominatio n of the State has had a negative effect on the contribution of the banking sect or as a whole to the economy. Absence of profitability, non-realization of its p otential as a business and the deterioration in service has all affected citizen s. 2. The intervention by the State and excessive domination and intervention by the bureaucracy and polity into the functioning of banks has led to deteriorati on on economic efficiency, which runs counter to the principles of a good Govern ment. 3. Low Profitability: When the ownership is in public sector, the employs do not work for profit and do not there performance and efficiency of the employ s remains poor. Competition is necessary for development and increasing the prod uction. Nationalization has decreased the spirit of competition This phase of In dian banking not so happening for entry of new banks. Undoubtedly, it was a phas e of expansion, consolidation and increment in many ways. The banking sector gre w at a phenomenal rate, fruits of nationalization were evident, and common perso n was now banking with great trust. National Bank for Agricultural and Rural Dev elopment (NABARD) was set up in 1982, as an apex institution for agricultural an d rural credit, though primarily, a refinance extension institution. Board for I ndustrial & Financial Reconstruction (BIFR) came into existence under Sick Compa nies (Special Provisions) Act 1985 and started its operations wef May 15, 1987. It is meant to deal with sick companies or potential sick companies as defined u nder the Act. BIFR, based on a reference by the concerned sick company, takes a decision whether the company should be rehabilitated or wound up.

Modern Phase from 1991 till date This is the phase of New Generation tech-savvy banks. This phase can be called as Th orms Phase . Starting of the modern and current phase of Indian Banking is marked by two important events. Narasimhan Committee The Committee on Banking Sector Reforms Committee 8 headed by Mr. M. Narasimhan, it is also known as Narasimhan Committee. The Committee, headed by former Reser ve Bank of India governor M Narasimhan, was appointed by the United Front govern ment to review the progress in banking sector reforms. The committee submitted i ts recommendations to union Finance Minister Yashwant Sinha in November of 1991. The Committee was required to review the progress in the reforms in the banking sector over the past six years with and to chart a programme on Financial Secto r Reforms necessary to strengthen the India's financial system and make it inter nationally competitive taking into account the vast changes in the international and financial markets, technogical advances. Some of the recommendations offere d by the committee are: 1. A reduction, phased over five years in the Statutory Liquidity Ratio (SLR) to 25 percent, synchronized with the planned contraction i n Fiscal Deficit. 2. A progressive reduction in the Cash Reserve Ratio (CRR). 3. Gradual deregulation of interest rates. 4. All banks to attain Capita Adequacy 8% in a phased manner. 5. Banks to make substantial provisions for bad and doubt ful debts. 6. Profitable and reputed banks be permitted to raise capital from th e public. 7. Instituting an Assets Reconstruction Fund to which the bad and doub tful debts of banks and Financial Institutions could be transferred at a discoun t. 8. Facilitating the establishment of new private banks, subject to RBI norms. 9. Banks and financial institutions to classify their assets into four broad gr oups, viz, Standard, Sub-standard, Doubtful and Loss. 10. RBI to be primarily re sponsible for the regulation of the banking system. 11. Larger role for Securiti es Exchange Board of India (SEBI), particularly as a market regulator rather tha n as a controlling authority. 8 http://pib.nic.in/focus/fomore/narsim.html

Economic Liberalization in India The second major turning point in this phase was Economic Liberalization in Indi a. After Independence in 1947, India adhered to socialist policies. The extensiv e regulation was sarcastically dubbed as the "License Raj". The Government of In dia headed by Narasimha Rao decided to usher in several reforms that are collect ively termed as liberalization in the Indian media with Manmohan Singh whom he a ppointed Finance Minister. Dr. Manmohan Singh, an acclaimed economist, played a central role in implementing these reforms. New research suggests that the scope and pattern of these reforms in India's foreign investment and external trade s ectors followed the Chinese experience with external economic reforms. Reasons for the Reforms A Balance of Payments crisis in 1991 pushed the country to near bankruptcy. In r eturn for an IMF bailout, gold was transferred to London as collateral, the Rupe e devalued and economic reforms were forced upon India. That low point was the c atalyst required to transform the economy through badly needed reforms to unshac kle the economy. Controls started to be dismantled, tariffs, duties and taxes pr ogressively lowered, state monopolies broken, the economy was opened to trade an d investment, private sector enterprise and competition were encouraged and glob alisation was slowly embraced. Impact of Economic Liberalization on Finance & Banking Post nationalization now Indian banking sector was unshackled, and along with th e government banks a thick layer of private and foreign banks was taking shape. The first of such new generation banks to be set up was Global Trust Bank, which later amalgamated with Oriental Bank of Commerce, ICICI Bank, HDFC Bank and Axi s Bank. This move, along with the rapid growth in the economy of India, revitali zed the banking sector in India. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, w here all Foreign Investors in banks may be given voting rights, which could exce ed the present cap of 10%, at present it has gone up to 49% with some restrictio ns. The new wave ushered in a modern outlook and tech-savvy methods of working f or traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Banking Sector Reforms since 1992 The first type of reforms mainly based on Narasimhan Committee recommendations a nd the principals of new liberalized Indian economy. Out of the 27 public sector banks (PSBs), 26 PSBs achieved the minimum capital to risk assets ratio (CRAR) of 9 per cent by March 2000. To enable the PSBs to operate in a more competitive manner, the Government adopted a policy of providing autonomous status to these banks, subject to certain benchmarks.

The Reserve Bank advised banks in February 1999 to put in place an ALM system, e ffective April 1, 1999 and set up internal asset liability management committees (ALCOs) at the top management level to oversee its implementation. Banks were e xpected to cover at least 60 per cent of their liabilities and assets in the int erim and 100 per cent of their business by April 1, 2000. Interest rate deregula tion has been an important component of the reform process. The interest rates i n the banking system have been largely deregulated except for certain specific c lasses; these are savings deposit accounts, non-resident Indian (NRI) deposits, small loans up to Rs.2 lakh and export credit. In 1994, a Board for Financial Su pervision (BFS) was constituted comprising select members of the RBI Board with a variety of professional expertise to exercise 'undivided attention to supervis ion'. The BFS, which generally meets once a month, provides direction on a conti nuing basis on regulatory policies including governance issues and supervisory p ractices. It also provides direction on supervisory actions in specific cases. T he share of the public sector banks in the aggregate assets of the banking secto r has come down from 90 per cent in 1991 to around 75 per cent in 2004. The shar e of wholly Government-owned public sector banks has declined from about 90 per cent to 10 per cent of aggregate assets of all scheduled commercial banks during the same period. Diversification of ownership has led to greater market account ability and improved efficiency. Current market value of the share capital of th e Government in public sector banks has increased manifold and as such, what was perceived to be a bailout of public sector banks by Government seems to be turn ing out to be a profitable investment for the Government. A Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) has also been recently constituted to prescribe policies relating to the regulation and supervision of all types of payment and settlement systems, set standards for existing and fut ure systems, authorize the payment and settlement systems and determine criteria for membership to these systems. Both the Houses of the Parliament have passed the Credit Information Companies (Regulation) Bill, 2004. Consolidation in the b anking sector has been another feature of the reform process. This also encompas sed the Development Financial Institutions (DFIs), which have been providers of long-term finance. Since 1993, twelve new private sector banks have been set up. As already mentioned, an element of private shareholding in public sector banks has been injected by enabling a reduction in the Government shareholding in pub lic sector banks to 51 per cent. As a major step towards enhancing competition i n the banking sector, foreign direct investment in the private sector banks is n ow allowed up to 74 per cent, subject to conformity with the guidelines issued f rom time to time. Currently, banking in India is generally fairly mature in term s of supply, product range and reacheven though reach in rural India still remai ns a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong a nd transparent balance sheets relative to other banks in comparable economies in its region. Reserve Bank of India in March 2006 allowed Warburg Pincus to incre ase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private secto r bank.

Current Banking Structure Banks in India can be categorized into Scheduled and Non-scheduled Banks Scheduled Banks Scheduled Banks in India constitute those banks, which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes o nly those banks in this schedule which satisfy the criteria laid down vide secti on 42 (6) (a) of the Act. As on 30th June 1999, there were 300 scheduled banks i n India having a total network of 64,918 branches. The scheduled commercial bank s in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks an d regional rural banks Non-Schedule Banks Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a sche duled bank". Banks in India can also be classified in a different way. Public Se ctor Banks Private Sector Banks Foreign Banks Regional Rural Banks (RRBs) The ab ove mentioned classification overlaps with the previous one. Public Sector, Priv ate Sector and Foreign Banks fall the category of scheduled banks. Currently, In dia has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is w ith the Government of India holding a stake), 31 private banks (these do not hav e government stake; they may be publicly listed and traded on stock exchanges) a nd 38 foreign banks. They have a combined network of over 53,000 branches and 17 ,000 ATMs. According to a report by ICRA Limited, a rating agency, the public se ctor banks hold over 75% of total assets of the banking industry, with the priva te and foreign banks holding 18.2% and 6.5% respectively.

Industry Data Banks in India RBI List http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=A%20Profile%20of%20Ba nks Statistical Tables Relating to Banks of India http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Statistical%20Tables% 20Relating%20 to%20Banks%20of%20India Trend and Progress of Banking in India http://www.rbi.org.in/Scripts/AnnualPublications.aspx?head=Trend%20and%20Progres s%20of%20 Banking%20in%20India

Bibliography Bagchi, A. K. (1972) Private Investment in India 1900-39. New Delhi: Orient Long man Ltd. Concept of Deregulation - Lessons from banking history in India by Prof K.V. Bha nu Murthy, Delhi University. http://finance.indiamart.com/investment_in_india/banki ng_in_india.html RECENT HISTORY OF INDIAN BANKING at http://www.bankingindiaupda te.com/general.html RBI Publications at http://www.rbi.org.in/scripts/publicatio ns.aspx The Economic Journal, Vol. 37, No. 146. Published by: Blackwell Publishing for t he Royal Economic Society. C.P.I.M, Vol. XXIX - July 31, 2005 - Jayati Ghosh