The name of the first bank established in India was

The correct answer is Bank of Hindustan.

Bank of Hindostan

• Bank of Hindostan (1770-1832) was the first bank established in India.
• It was founded in 1770 by the Alexander & Co., an English agency house, in Calcutta (Kolkata).
• It is also considered the first commercial bank in India.
• The bank ceased operations in 1832 and no longer exists.

Presidency Banks

The British established three Presidency Banks to facilitate trade and government finance:

1. Bank of Calcutta (1806)
   • Established on 2 June 1806 in Calcutta.
   • Renamed the Bank of Bengal in 1809 after receiving a Royal Charter.
   • It was the first Presidency Bank.
2. Bank of Bombay (1840)
   • Established in 1840 in Bombay (now Mumbai).
   • Served the Bombay Presidency.
3. Bank of Madras (1843)
   • Established in 1843 in Madras (now Chennai).
   • Served the Madras Presidency.

• These three banks were collectively known as the Presidency Banks.
• They had the authority to issue banknotes until the Paper Currency Act, 1861, after which the Government of India obtained the sole right to issue currency.

Imperial Bank of India

• The Imperial Bank of India was established on 27 January 1921.
• It was formed by the amalgamation of the three Presidency Banks:
  • Bank of Bengal
  • Bank of Bombay
  • Bank of Madras
• It functioned as:
  • A commercial bank,
  • A banker to the Government, and
  • A banker to other banks before the Reserve Bank of India (RBI) was established.
• Until 1935, it performed several central banking functions in India.

State Bank of India (SBI)

• The Reserve Bank of India (RBI) was established on 1 April 1935, taking over central banking functions from the Imperial Bank.
• The Imperial Bank of India was nationalized in 1955 under the State Bank of India Act, 1955.
• The Reserve Bank of India acquired a 60% stake, and the bank was renamed the State Bank of India (SBI) on 1 July 1955.
• SBI became the largest public sector bank in India.
• In 2008, the RBI transferred its stake in SBI to the Government of India.