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January 1, 1949: The Reserve
Bank of India is nationalised by an act of Parliament
September 4, 1951: The government announces
its plan to seek developmental loans from the world bank
July 1, 1955: The State bank of India
comes into existence, taking over the Imperial Bank operations
1956: Life Insurance Companies are nationalised
and brought under government management
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| IDBI's swank office in Mumbai |
July 3, 1964: IDBI is set up.
June 6, 1966 : Rupee is devalued by
36.5 per cent to Rs 7.50 from Rs 4.76 to dollar
July 19,1969: Fourteen banks are nationalised-Allahabad
Bank, Bank of Maharashtra, BoB, BoI, Canara Bank, Central Bank of
India, Dena Bank, IoB, Indian Bank, Syndicate Bank, PNB, UBI, UCO,
and Union Bank
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| S.B. Chavan: FERA champion |
1973: The Foreign Exchange Regulation
Act comes into effect
January 11, 1978: Currency notes in
denominations of Rs 1,000, Rs 5,000 and Rs 10,000 are withdrawn
from circulation
April 15, 1980: Nationalisation of six
more banks-Andhra Bank, Corporation Bank, New India Bank, Oriental
Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank
November 19,1986: The Government of
India launches Indira Vikas Patra
1987: To mobilise resources for meeting
drought-related-expenditure the government of India introduces 9
per cent relief bonds
April 1988: To mobilise untapped rural
savings a new instrument, Kisan Vikas Patra is launched.
July 9, 1988: National Housing Bank
is set up with a share capital of Rs 100 crore entirely subscribed
by RBI
July 1 and 3, 1991: The RBI had to devalue
the rupee in a two-step downward adjustment of 17.38 per cent.
July 3, 1991: The bank rate, which was
dormant since July 1981, is hiked from 10 per cent to 11 per cent
and further to 12 per cent on October 8, 1991
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| Narasimhan: financial reformer |
November 1991: M. Narasimham committee
on reforming the financial system presents its report. Among other
things it suggests phased reduction of SLR to 25 per cent in three
years and CRR to 10 per cent in four years.
April 1992: RBI introduces risk-assets-ratio-system
for banks as a capital adequacy measure.
March 1, 1992: Dual exchange rate system
is instituted under Liberalised Exchange Rate Management enabling
orderly transition from a managed floating regime to a market determined
one
January 8,1993: FERA is amended and
subsequently repealed and replaced by the Foreign Exchange Regulation
(Amendment) Act, 1993
January 1993: Guidelines for setting
up private sector banks are issued
March 1993: Rupee is made convertible
on the trade account, starting the process of convertibility
September 1993: New Bank of India is
merged into PNB
March 1994: With the receipt of a licence,
UTI Bank becomes the first private sector bank to start operating
June 13,1994: RBI issues guidelines
on prudential norms. Banks to achieve minimum capital adequacy ratio
of 6 per cent on their risk weighted assets and off-balance sheet
exposures by March 31, 1995 and 8 per cent by March 1996.
July 15, 1994: With the amendment to
the Banking Companies (Acquisition and Transition of Undertakings
) Act 1970, nationalised banks are allowed to strengthen their capital
base by tapping the capital market for public contribution to their
capital upto 49 per cent
August 1994: Second step towards full
convertibility is taken by making the rupee convertible on the current
account
October 1994: Oriental Bank of Commerce
becomes the first nationalised bank to access the capital market
to raise Rs 387.24 crore
October 1, 1995: Banks are allowed to
fix own interest rates on domestic term deposits with maturity of
two years
July 1996: The insurance Regulatory
Authority is set up to privatise the insurance sector.
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| IRDA's Rangachary: safe regulator |
May 9,1997: RBI issues new norms for
non banking finance companies to improve their financial health
and viability;. they are required to apply for registration with
RBI by July 8,1997
December 7,1997: RBI constitutes a working
group under chairmanship of S.H. Khan to examine the harmonisation
of the role and operations of development finance institutions and
banks
April 24,1998: The Khan committee on
the harmonisation of the role and operations of development finance
institutions and banks submits recommendations suggesting a gradual
move towards universal banking
August 9, 2000: Banks having a minimum
net worth of Rs 500 crore and satisfying other criteria in regard
to capital adequacy are allowed to enter the insurance business
through a joint venture
November 10, 2000: Guidelines for bank
financing of equities and investment in shares is issued. Banks
are allowed to invest upto 5 per cent of its total outstanding domestic
credit in capital market.
January 3, 2001: Revised guidelines
for licensing of new banks in the private sector are issued. These
stipulate a minimum initial paid-up capital of Rs 200 crore (to
be raised to Rs 300 crore within three years of commencement of
business) with a minimum 40 per cent as contribution from the promoter
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| IDBI's P.P. Vora and ICICI's Kamath: u-bank
dreams |
March 15, 2001: GoI reduces the interest
rate payable on relief bonds issued under the 9 per cent, 1999 scheme
to 8.5 per cent.
April 19,2001: Banks permitted to formulate
fixed deposit schemes specifically for senior citizens offering
higher and fixed rate of interest
April 28,2001: RBI clarifies approach
to universal banking for term lending and refinancing institutions.
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