Evolution of the Banking System in India
The banking system plays an important role in the economy of a nation. A banking institution is indispensable in a modern society. It plays a central role in the economic development of a country and is the heart of the money market in an advanced country.
The banking industry in India has come a long way to assume its present stature. He suffered a major structural transformation after the nationalization of 14 major commercial banks in 1969 and on April 15, 1980 6. The Indian banking system is unique and may have no parallel in the history of banking in any country in the world.
Reserve Bank of India-OBJECTIVE ECONOMIC AND SOCIAL
The Reserve Bank of India has an important role to play in maintaining the exchange value of the rupee in view of the close interdependence of international trade and national economic growth and well-being. This is responsible for the largest of the central bank to maintain economic and financial stability. For this bank is entrusted to the care and management of international reserves of the country it also acts as a government agent with respect to the accession of India International Monetary Fund. With economic development the bank also performs a variety of functions development and promotion in the past were registered being outside the normal central bank. It is also an important regulator.