Assistant Professor of Commerce, Smt N.P. Savitramma Govt College(w) Chittoor. & Research Scholar of Andhra University, Visakhapatnam
Online published on 4 August, 2018.
Independent India witnessed “Land mark events” in the financial system in general and the banking system in particular, which affected the functioning of Foreign Banks in India both directly and indirectly. Some of the key policy and legislative measures such as the nationalization of the Reserve Bank of India, the passing of the Banking Companies Act, 1949, introduction of five year economic plans, conversion of the Imperial Bank of India into the State Bank of India, take over of the Princely State Owned Banks and their conversion into subsidiaries of SBI, introduction of deposit insurance, etc., left an indelible mark on the banking scene in India. Among these, the passing of Banking Companies Act, 1949 (Presently banking Regulation Act) was considered to be the “single most vital legislative initiative”, as this was very instrumental to repaint the whole banking canvas including the position and functioning of the Foreign Banks operating in India during the successive years of free India.
