Chronology of Events

Republic India: Towards a Planned Economy - 1950 to 1960

Date Event
Oct 1950 Department of Banking Development created together with the new post of Executive Director.
1951 Reserve Bank of India (Amendment) Act, 1951 enabled the Bank to become Banker to Part B states after executing agreements with them.
  First Five Year Plan launched.
1 Jan 1952 Bill Market Scheme introduced to enable banks to obtain advances from the Reserve Bank against self liquidating bills. It was aimed at allowing currency to expand to meet seasonal requirements.
1 Aug 1952 State Financial Corporations Act, 1951 came into effect. It Enabled state governments to establish Financial corporations for meeting the credit needs of medium and small scale industries. Bank's Holdings of the capital of SFCs taken over by the IDBI in 1976.
Aug 1954 All-India Rural Credit Survey Committee Report submitted. Its recommendations led to bringing rural credit onto the centre stage of central bank activism. Led to the formation of the State Bank of India.
14 Sep 1954 Bankers' Training College to provide training to banking personnel established at Bombay (Mumbai) inaugurated.
1 Apr 1955 Hali Sicca Rupees which had a circulation of about OS 48 crores ceased to be legal tender in the erstwhile Hyderabad State. These were replaced by Indian Rupees.
1 Jul 1955 Imperial Bank of India converted to a state owned institution, State Bank of India on July 1, 1955. One of the immediate objectives was to establish additional branches particularly at district headquarters. It was also expected to provide remittance and other facilities to co-operative and other banks and attempt to mobilise rural savings.
  Second Five Year Plan commences
17 May 1956 Selective Credit Controls were deployed for first time.
6 Oct 1956 System of Note Issue changed from Proportional Reserve System requiring the Reserve Bank to maintain 40% gold and forex reserves against note issue to a minimum reserve system. This was to enable the expanding currency requirements of the economy to be met.
14 Jan 1957 Resignation of Governor, Sir Benegal Rama Rau.
14 Jan 1957 K.G. Ambegaonkar appointed governor till February 28th.
1 Mar 1957 HVR Iengar appointed governor
31 Oct 1957 Minimum reserves against note issue relaxed further.
1959 State Bank of India (Subsidiary Banks) Act, 1959 made the banks of the erstwhile Princely Sates of India the subsidiaries of the State Bank of India. These were The Bank of Bikaner, The Bank of Jaipur, The Bank of Indore. The Bank of Mysore, The Bank of Patiala, The Bank of Hyderabad, The Bank of Saurashtra and The Bank of Travancore were made subsidiaries of The State Bank of India. The Bank of Bikaner and The Bank of Jaipur were amalgamated in 1963 to form the State Bank of Bikaner and Jaipur.