Bank is a place where
people deposit their money as savings to get interest on it and take loan when
they need for their requirements, where bank accepts their deposits and create
credit. All the Banks work under the central bank of the country, In India the
central bank is Reserve Bank of India (RBI). Banking in India originated in 18th
century. The one of the first banks to function in India were Banks of
Hindustan (1770-1832) and General Bank of India (1786-1791). State Bank of
India is the largest and oldest bank which is still in existence. It was
originated as Bank of Calcutta in 1806 which later in 1809 renamed as Bank of Bengal.
The bank was one of the three banks which were funded by the presidency
government. These three banks funded by the presidency government later merged
in 1921 to form the Imperial Bank of India which later after independence
became the State Bank of India in 1955.

Whereas the Reserve
Bank of India started operating first time during the British rule on 1 April
1935 under the provisions of the Reserve Bank of India 1934. The Reserve Bank
of India became the central banking authority in 1965. The bank has its
headquarters in Mumbai, Maharashtra, India and the current Governor of the bank
is Urjit Patel. RBI plays a very important role in functioning of the banks in
India. It makes several policies regarding the services which banks are
providing to the public whether it is for a private bank or for a public
cooperative bank or it is a government owned bank. To make the banking easier
for the public RBI also helped in computerising the banking work by bringing E-Banking in India.

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The online services
started in New York in 1981 where four of the city’s major banks offered home
banking services using the videotex system but it appeared to be a failure at
that time. But in France and UK this system became popular and was appreciated
by people. So in 1990s banks started to think about clicks (online) and bricks
(offline) to use as a strategic imperative which also acquire less cost and
easy to use. In mid 1990s financial institutions took a big step to implement
E-Banking services. But many consumers hesitated to conduct monetary
transactions over the internet. But with the widespread awareness and
adaptation from the big companies like America Online, Amazon.com and eBay
consumer use grew slowly. In 2000, 80% of the banks in US offered E-Banking
services which made it familiar with consumers in no time. After that millions
of people started to use E-Banking services.