Thursday, July 30, 2009
Tuesday, July 28, 2009
The Banks’ main business, as everybody knows, is to collect (idle money from public through) Deposits and Lending them to the needy, earning margin as profit in the process. Besides, they also perform some Agency Services and General Utility Services.
Some of the Agency Services are Collection of cheques and other bills of exchange; Collection of Receivables like Rents etc., Payment of payables like Insurance premiums etc. for which they charge ‘commission’.
Some of the General Utility Services are Sale of Demand Drafts, Purchasing of cheques and other instruments, Discounting of Bills of Exchange etc. through which they earn ‘exchange’.
Thus the Banks are the nerve centre of financial activity in any country.
Some of the World Famous Banks were ‘The Westminster Bank’, ‘Lloyds Bank’, ‘British Bank of the Middle East’, ‘Chase Manhattan’, ‘Bank of America’, ‘Banque de Nationale Paris’ etc.
There were laws framed to govern the Banking practices in various countries and in
The first Bank started in
Later many Banks came into existence and in the year 1969 the then big Banks viz. Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Corporation Bank, Indian Bank, Indian Overseas Bank, New Bank of India, Punjab & Sind Bank, Punjab National Bank, Syndicate Bank, Union Bank of India, United Commercial Bank were Nationalised to become Government of India Undertakings.
During the early '80s, Five more Banks were nationalised viz. Andhra Bank, Bank of Maharashtra, Dena Bank, Oriental Bank of Commerce & United Bank of India, Vijaya Bank.
During the ‘90s, after introduction of Economic Reforms in
During the late ‘90s, some of the Private Banks began going to The Wall and till now there is no recourse to their depositors. After these incidents, the Reserve Bank of
Besides, all the Banks in
(We will discuss the haphazardness of the IT-savvy-ness of the Banks later.)
Meanwhile, we may review the progress and other aspects of the Indian Banking Industry, since
The Banking Business was carried on usually by the Banks in
It was in those days that the Communist Party of India started organizing the employees into Trade Unions and representing on their behalf before the Managements of Banks. Thus was born the “All India Bank Employees Association”. (AIBEA).
(This was my second post after I have become a serious blogger! What with my private, very slow internet connection and my primitive system, I did not think blogging was so easy! So then I was not a frequent visitor to the blog world! But now......! I want to continue the leftover subjects also and so......await my next posts!)