In which year Imperial Bank changes its name to State Bank of India?
VerifiedAnswer: 1955
Explanation:
The Imperial Bank of India was officially renamed as the State Bank of India on July 1, 1955. This transformation marked a significant milestone in India's banking history and represented the government's commitment to establishing a strong public sector banking system in the newly independent nation.
The Imperial Bank of India had been functioning as India's central bank since 1921, when it was formed through the merger of three presidency banks - the Bank of Bengal, Bank of Bombay, and Bank of Madras. However, after India gained independence in 1947, the government felt the need to create a banking institution that would better serve the economic goals of the new nation and support its development plans.
The transformation was achieved through the State Bank of India Act of 1955, which was passed by the Indian Parliament. This act provided the legal framework for converting the Imperial Bank into a state-owned institution. The Reserve Bank of India, which had been established in 1935, took over the central banking functions, while the newly formed State Bank of India focused on commercial banking operations.
The renaming to State Bank of India reflected the bank's new role as a government-owned institution dedicated to serving the public interest. The government acquired the Imperial Bank's assets and operations, making it the country's largest commercial bank. This move was part of India's broader economic policy of establishing strong public sector institutions that could support the nation's Five-Year Plans and development objectives.
Since its establishment in 1955, the State Bank of India has grown to become one of India's most prominent financial institutions, playing a crucial role in the country's economic development and serving millions of customers across the nation and internationally.
