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Banking In India

  • Reserve Bank of India (RBI) was established in 1935 and Nationalized in 1949.
  • Sir Osborne Smith was the first Governor of the Reserve Bank of India
  • CD Deshmukh was the first Indian Governor of RBI.
  • Savings account system in India was started by Presidency Bank, in 1833.
  • Cheque system was first introduced by Bengal Bank which was established in 1784.
  • Allahabad Bank is the oldest existing public sector bank in India. 
  • Hongkong and Shanghai Banking Corporation (HSBC) introduced first time ATM in India in 1987, Mumbai.
  • Bank of India is the first Indian Bank to open overseas branch. It established a branch in London in 1946.
  • Central Bank of India was the first public bank to introduce credit card.
  • Central Bank of India is the first commercial bank which was managed by Indians.
  • ICICI Bank was the first Indian Bank to provide internet banking facility.
  • ICICI Bank was the first Bank to provide Mobile ATM.
  • Bank of Baroda has the maximum number of overseas branches.
  • SBI (State Bank of India) has the total number of maximum branches and holds 2nd position in the world.
  • India's first "talking" Automated Teller Machine (ATM) launched by Union Bank of India (UBI) for visually impaired was launched in Ahmedabad (Gujarat).
  • The National Payments Corporation of India (NPCI) launches India’s first rural bank ATM card   with a regional rural bank in Varanasi.

Note:  NPCI launched the first Gramin bank ATM card with the Kashi Gomti Samyut Gramin Bank in association with Union Bank of India in Varanasi. The card is called RuPay Gramin Card.

  • India's first non-bank owned ATM opens in Maharashtra: Tata Communications Payments Solutions Ltd, a wholly owned subsidiary of Tata Communications Ltd, which unveiled the ATM at Chandrapada in Thane district, plans to roll out 15,000 such ATMs by 2016.

Note: Private sector lender Federal Bank announced its tie-up with Tata Communications Payment Solutions Ltd as the sponsor bank to deploy White Label ATMs (WLAs).

ATMs: (Automated Teller Machine)

The ATM debit cards, credit cards and prepaid cards (that permit cash withdrawal) issued by banks can be used at ATMs for various transactions.


Use of ATMs of Other Banks:

  • 5 free transactions are permitted per month (inclusive of financial and/or non-financial) at other bank ATMs for Savings Bank Account holders.
  • For transaction beyond this minimum number of transactions, banks charge maximum of Rs 20/ - per transaction.

Personal Identification Number (PIN)

A Personal Identification Number is a secret numeric password shared between user and a system that can be use to authenticate the user to the system.


Reconciliation of failed transactions at ATMs:

  1. The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint.
  2. Accordingly, failure to recredit the customer’s account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs. 100/- per day by the issuing bank..
  3. Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction.
  4. All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank through the ATM system provider only.   
  5. If the course of action for the customer complaint is not taken by his/her bank within the stipulated time than customer can take recourse to the local Banking Ombudsman in such situations.

IFSC (Indian Financial System Code)

  1. Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.
  2. This is an 11 digit code with the first 4 alpha characters representing the bank, The 5th character is 0 (zero).and the last 6 characters representing the bank branch.
  3. IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.
  4. For ex: SBIN0015986 :
    1. First 4 character SBIN – refers to State Bank of India.
    2. 0 is a control number.
    3. last six characters (015986) represents the SBI branch Jail Road, Hari Nagar New Delhi.


Stands for Magnetic Ink Character Recognition. MICR Code is a numeric code which uniquely identifies a bank branch participating in the ECS Credit scheme. MICR code consists of 9 digits e.g 400229128

  • First 3 digits represent the city (400)
  • Next 3 digits represent the bank (229)
  • Last 3 digits represent the branch (128)
  • The MICR Code allotted to a bank branch is printed on the MICR band of cheque leaves issued by bank branches. 

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