Which is the first bank established in India?

Appeared in: AIIMS Nagpur NO - 2018

Explanation

The Bank of Hindustan was the first bank established in India in the year 1770.
It was founded in Calcutta (present-day Kolkata) under European management.
Although it ceased operations in the 1830s, it holds the historical distinction of being the first modern banking institution in the country.

Option A: The State Bank of India is the oldest commercial bank still in existence in India, but it was not the first bank to be established. Its origins trace back to the Bank of Calcutta, founded in 1806.
Option C: The Bank of Maharashtra was established in 1935, which is significantly later than the establishment of the first bank in India.
Option D: Dena Bank was founded in 1938. It was a 20th-century bank and not the first in India.

Visual 1: Infographic - A timeline showing the establishment dates of major early banks in India, highlighting the Bank of Hindustan (1770) as the first, followed by others like the General Bank of India and the Presidency Banks.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain History of Banking in India as background academic context rather than a clinical decision trigger.
This is a general knowledge question testing historical awareness of India's financial sector, which is relevant for general aptitude sections of nursing exams.
Understanding the history of national institutions helps in appreciating their evolution and current role in the country's economy.
What if the question asked for the first bank purely managed by Indians? The answer would be Punjab National Bank, established in 1894.

How to Approach the Question

This is a factual recall question from the general knowledge domain.
First, identify the core of the question: 'first bank in India'.
Scan the options provided.
Recall the historical timeline of banking in India. It's crucial to differentiate between the absolute 'first' bank ever established and the 'oldest existing' bank.
The Bank of Hindustan was founded in 1770, making it the first.
Select the option that corresponds to this historical fact.

Concept Tested & Keywords

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Practise the full AIIMS Nagpur NO - 2018

Attempt every question from this paper in a timed mock, then review the full solution for each one.