The Second Phase of banking in India starts from 1935 when Reserve Bank of India was established. Between the period of 1911-1948, there were more than 1000 banks in India, almost all small banks. TheReserve Bank of India was constituted in 1934 as an apex Bank, however without major government ownership.

Immediately after the independence, the Government of India came up with the Banking Companies Act 1949. This act was later changed to Banking Regulation (Amendment) Act 1949. Further, the Banking Regulation (Amendment) Act of 1965 gave extensive powers to the Reserve Bank of India and via this act, the Reserve Bank of India was made the Central Banking Authority.

Sl. Event Year
1 The first bank inIndia’Bank of Hindustan’ established 1770
3 First general insurance company established 1850
5 Bombay Stock Exchange (BSE) started trading 1875
7 Oriental Life Insurance Company established 1918
9 Bank of Bengal, Bank of Madras and Bank of Bombay were merged into Imperial Bank 1921
11 Establishment of ‘Hilton-Young Commission’ to suggest a central bank for the country 1926
13 Establishment of ‘Reserve Bank ofIndia’ as the central bank 1935
15 Control of Capital Issues Act imposed 1947
17 Establishment of Industrial Finance Corporation (IFC). 1948
19 Imperial Bank taken over by State Bank ofIndia; Establishment of Industrial Credit and Investment Corporation of India (ICICI) 1955
21 Life Insurance Company of India (LIC) was established 1956
25 Insertion of a new Chapter in RBI Act, 1934 to effectively supervise, control and regulate NBFCs 1963
27 Establishment of Industrial Development Bank ofIndia(IDBI) 1964
29 Deposit insurance extended to co-operative banks 1966
31 Nationalisation of 14 largest banks commercial banks 1969
33 Nationalisation of general insurance companies
Foreign Exchange Regulation Act (FERA) was promulgated which provided an opportunity to develop Indian equity market		 1973
35 Establishment of Regional Rural Banks 1975
37 Second round of nationalisation of 6 commercial banks 1980
39 Establishment of National Bank for Agriculture and Rural Development (NABARD)
First credit rating agency established inIndia		 1982
41 Establishment of Small Industries Development Bank ofIndia 1990
43 Report of the Committee on the Financial System, which provided the blueprint for first generation financial sector reforms. 1991
45 Introduction of prudential norms for income recognition and asset classification;
SEBI became capital market regulator
National Stock Exchange (NSE) was established as the first screen-based trading platform for traders.		 1992
47 Introduction of Depositories 1993
49 Board for Financial Supervision, under RBI, established
New guidelines for entry of new private sector banks announced
Wholesale debt market operations started by NSE.		 1994
51 Establishment of Institute for Development and Research in Banking Technology
Depositories Act was passed which allowed for holding of securities in dematerialised form.		 1996
53 Termination of automatic monetisation of Government deficit
Statutory Liquidity Ratio (SLR) reduced to 25% (legal minimum)		 1997
55 Insurance Regulation and Development Act passed
Detailed guidelines on risk management in banks announced		 1999
57 Guidelines issued regarding interest rate swaps and forward rate agreement
New guidelines for categorisation and valuation of banks’ investment portfolio announced
Liquidity Adjustment Facility introduced
Foreign Exchange Management Act		 2000
59 Credit Information Bureau of India Ltd was established 2001
61 Revised guidelines announced for entry of new private banks
Clearing Corporation of India Limited became operational		 2002
63 Central Listing Authority was constituted 2003