| Date |
Event |
| May
1960 |
The failure of Laxmi Bank
and the subsequent failure of the Palai Central Bank catalyzed the
introduction of deposit insurance in India. |
| 1960 |
Policy of
reconstruction / compulsory amalgamation of banks introduced to
consolidate the Banking sector. Powers to do so acquired by RBI Act
amendment.
Between 1960 to 1982 over 200 banks were merged or liquidated. |
| 1961 |
Third Five Year Plan
commences. |
| 7
Dec 1961 |
Deposit
Insurance introduced in India as a depositor protection measure. It
was intended to increase the confidence of the depositors in the
banking system, to facilitate the mobilisiation of deposits and
promote greater stability and growth of the banking system. |
| 15 May
1962 |
The Reserve Bank of India
Act, 1934, the Indian Coinage Act, 1906 and the Currency Ordinance,
1940 extended to Goa, Daman and Diu consequent to their liberation. |
| 1
Mar 1962 |
P.C.
Bhattacharyya appointed Governor. |
| May
1962 |
New Bank Branch Licensing
policy laid stress on opening of offices in ‘unbanked’ and
‘underdeveloped’ areas. |
| 16
Sep 1962 |
Cash
Reserve Ratio of banks was fixed uniformly at 3 % of their Demand
and Time Liabilities with the flexibility to vary it between 3 and
15%. |
| 1962 |
Chapter IIIA incorporated in
RBI Act empowered the Bank to collect information in regard to
credit facilities granted by individual banks and notified financial
institutions to their constituents. 1974 the scope of the term
credit information was enlarged to cover the means antecedents,
history of financial transactions and the creditworthiness of any
borrower or class of borrowers. |
| 1962 |
The
Banking Regulation Act amended. Scheduled Banks to maintain minimum
liquid assets (SLR) of not less than 25% of the Demand and Time
Liabilities. |
| 1 Jul
1962 |
Agricultural Refinance
Corporation (ARC) set up to provide Refinance to central land
mortgage banks, state coop banks, scheduled commercial banks who
were shareholders. |
| 26
Aug 1963 |
Staff
Training College established at Madras started a pilot course
representing one of the early HRD endeavours in the services sector. |
| 1 Feb
1964 |
RBI empowered to regulate
the deposit acceptance activities of non banking institutions. New
chapter IIIB inserted in RBI Act. |
| Feb
1964 |
Unit Trust
of India established to extend facilities for an equity type
investment to small investors and also mobilize resources and
channel them into investments so as to facilitate the growth of the
economy.
Commenced operations in July 1964. |
| 1 Jul
1964 |
IDBI established as a
subsidiary of the Reserve Bank of India with the purpose of
providing long term industrial finance. Took over business of
Refinance Corporation for Industry in September, 1964. |
| 20
Nov 1965 |
Credit
Regulation introduced to align the growth of bank credit with Plan
requirements. Later evolved into the Credit Authorisation Scheme (CAS). |
| 1 Mar
1966 |
Operations of co-operative
banking system brought under the regulatory ambit of the RBI.
Banking Laws. |
| Mar
1966 |
A new
Department of Non Banking Companies established at RBI Calcutta. |
| 6 Jun
1966 |
Rupee devalued by 36.5 %
The US Dollar which earlier was equivalent to Rs 4.75 now rose to Rs
7.50. |
| 2
Jul 1966 |
12 State
Cooperative Banks included in Second Schedule of RBI Act. |
| 17 Apr
1967 |
Size of Bank notes reduced. |
| 1
Jul 1967 |
L.K. Jha
appointed governor. |