HRM, 437 ASSESSMENT WEEK

where the banks would open branches. None of the three banks had till then any
branches (except for the sole attempt and that too a brief one by the Bank of Bengal
at Mirzapore in 1839) despite the way that the agreement had issued them such
power. In any case, when the three organization gatherings were ensured of the free
usage of government

Treasury equalities at spots where they would open branches, they set out on
branch advancement at a speedy pace. By 1876, the branches, workplaces and sub
associations of the three organization banks secured an expansive segment of the
genuine parts and an impressive parcel of the inland trade concentrates in India.
While the Bank of Bengal had eighteen branches including its head office, general
branches and sub workplaces, the Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

Organization Banks Act

The organization Banks Act, which came into operation on 1 May 1876, brought the
three organization banks under an ordinary statute with similar imprisonments on
business. The prohibitive relationship of the Government was, nevertheless, finished,
however the banks continued holding charge of general society commitment working
environments in the three organization towns, and the power of a bit of the
organization counterbalances. The Act moreover stipulated the making of Reserve
Treasuries at Calcutta, Bombay and Madras into which wholes over the foreordained
minimum conforms ensured to the organization banks at simply their head working
environments were to be held up. The Government could provide for the
organization banks from such Reserve Treasuries however the last could look upon
them more demonstration of generosity some assistance than as a benefit.

Bank of Madras

The decision of the Government to keep the surplus changes in Reserve Treasuries
outside the run of the mill control of the organization banks and the related decision
not to guarantee slightest government equalities at new places where branches were
to be opened effectively checked the advancement of new branches after 1876. The
pace of expansion saw in the before decade fell firmly but, by virtue of the Bank of
Madras, it continued on an inconspicuous scale as the advantages of that bank were
basically gotten from trade scattered among different port towns and inland centers
of the organization.

India saw fast commercialisation in the last quarter of the nineteenth century as its
rail line framework stretched out to cover all the critical locale of the country. New
watering framework sorts out in Madras, Punjab and Sind revived the procedure of
progress of subsistence items into cash trims, a section of which felt that it somehow
into the outside organizations. Tea and coffee farms changed far reaching reaches

of the eastern Terais, the inclines of Assam and the Nilgiris into regions of
endowment cultivating second to none. All these achieved the expansion of India's
all inclusive trade more than six-fold. The three organization banks were both
beneficiaries and promoters of this commercialisation change as they got the chance
to be incorporated in the financing of essentially every trading, amassing and mining
activity in the sub-landmass. While the Banks of Bengal and Bombay were involved
with the financing of tremendous current amassing business ventures, the Bank of
Madras went into the financing of broad propelled gathering organizations, the Bank
of Madras went into the financing of little scale business endeavors in a way which
had no parallel some place else. At any rate, the three banks were completely
banned from any business including outside exchange. Not simply was such
business considered unsafe for these banks, which held government stores, it was
moreover expected that these banks getting a charge out of government bolster
would offer uncalled for contention to the exchange banks which had by then
interfaced India. This shirking continued till the making of the Reserve Bank of India
in 1935.

Bank of Bombay

Organization Banks of Bengal

The Presidency Banks of Bengal, Bombay and Madras with their 70 branches were
met fit as a fiddle the Imperial Bank of India. The triad had been changed into a
stone landmark and a creature among Indian business banks had risen. The new
bank handled the triple piece of a business bank, an agent's bank and a speculator
to the organization.