Tag: history

A bank draft is a payment on behalf of a payer that is guaranteed by the issuing bank. A draft ensures the payee  a secure form of payment. During a payer’s reconciliation  of his bank account, he notices a decrease in the account balance because of the money withdrawn from the account.
To obtain a bank draft, a person must first deposit funds equal to the cheque amount with the issuing bank. The bank then generates a cheque to the payee drawn on the bank's own account. The name of the remitter (the person purchasing the cheque) is noted on the check, but the bank itself is the entity making the payment. The cheque is signed by a bank cashier or officer.

The Government of India set up the Industrial Reconstruction Corporation of India (IRCI) in April 1971, under the Indian Companies Act, mainly to look after special problems of sick units’ and provide assistance for their speedy reconstruction and rehabilitation, if necessary, by undertaking the management of the units and developing infrastructure facilities like those of transport, marketing etc.

The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975 and was subsequently restructured in 1982 and again on 1986. The restructured programme, known as Twenty Point Programme in 2006, became operational with effect from 1st April, 2007.

Small Industries Development Bank of India (SIDBI) is a development financial institution in India, headquartered at Lucknow and having its offices all over the country.

Regional Rural Banks were formed under the R.R.B. Act, 1976, with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.

First of all Imperial Bank of India was taken over by the Government of India on July $1$, $1955$ and was named as State Bank of India. Along with it eight other (at present seven) were converted as it associate banks and they formed State Bank Group.
$1$. The State Bank of Bikaner and Jaipur. (Earlier Bikaner and Jaipur were separate banks)
$2$. The State Bank of Hyderabad
$3$. The State Bank of Indore
$4$. The State Bank of Mysore
$5$. The State Bank of Saurastra
$6$. The State Bank of Patiala
$7$. The State Bank of Travancore.

The prime or major objective behind the Nationalization of Banks in 1969 was to ensure release of huge amounts held by the Private Banks by way of deposits from the general public for the equitable and inclusive growth of the country's economy and facilitate easy access to credit for all the sectors of the economy.

Indira Gandhi nationalised 14 major banks through an Ordinance on July 19, 1969. These banks held 70-85 per cent of total deposits in banks at the time.