Bank is a place wherepeople deposit their money as savings to get interest on it and take loan whenthey need for their requirements, where bank accepts their deposits and createcredit. All the Banks work under the central bank of the country, In India thecentral bank is Reserve Bank of India (RBI). Banking in India originated in 18thcentury. The one of the first banks to function in India were Banks ofHindustan (1770-1832) and General Bank of India (1786-1791). State Bank ofIndia is the largest and oldest bank which is still in existence. It wasoriginated as Bank of Calcutta in 1806 which later in 1809 renamed as Bank of Bengal.The bank was one of the three banks which were funded by the presidencygovernment.
These three banks funded by the presidency government later mergedin 1921 to form the Imperial Bank of India which later after independencebecame the State Bank of India in 1955.Whereas the ReserveBank of India started operating first time during the British rule on 1 April1935 under the provisions of the Reserve Bank of India 1934. The Reserve Bankof India became the central banking authority in 1965. The bank has itsheadquarters in Mumbai, Maharashtra, India and the current Governor of the bankis Urjit Patel. RBI plays a very important role in functioning of the banks inIndia.
It makes several policies regarding the services which banks areproviding to the public whether it is for a private bank or for a publiccooperative bank or it is a government owned bank. To make the banking easierfor the public RBI also helped in computerising the banking work by bringing E-Banking in India.The online servicesstarted in New York in 1981 where four of the city’s major banks offered homebanking services using the videotex system but it appeared to be a failure atthat time. But in France and UK this system became popular and was appreciatedby people.
So in 1990s banks started to think about clicks (online) and bricks(offline) to use as a strategic imperative which also acquire less cost andeasy to use. In mid 1990s financial institutions took a big step to implementE-Banking services. But many consumers hesitated to conduct monetarytransactions over the internet. But with the widespread awareness andadaptation from the big companies like America Online, Amazon.com and eBayconsumer use grew slowly. In 2000, 80% of the banks in US offered E-Bankingservices which made it familiar with consumers in no time. After that millionsof people started to use E-Banking services.