Modern banking in India was originated in 18 th century and Bank of Hindustan setup in 1770
was first banks in India. Afterwards, Banking and finance sector in India seen a tectonic shift
after liberalization era and as of now Indian banking sector includes 12 public sector, 22
private sector and 46 foreign banks but assets of PSUs are nearly 60% of total banking assets
in India. And is all set to become the third largest domestic banker sector by 2050. RBI is
India’s central banking authority established in 1935 and was nationalized in January 1949.
And as per its reports India’s banking sector is well capitalized and sufficiently liquidated.
Hence, there are various banking laws and regulations which are mainly or partly related to
overall functioning of banks.