UPSC Prelims 2003·GS1·economy·money and banking

In India, the first bank of limited liability managed by Indians and founded in 1881 was

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Last updated 23 May 2026, 3:31 pm IST
  1. AHindustan Commercial Bank
  2. BOudh Commercial BankCorrect
  3. CPunjab National Bank
  4. DPunjab and Sind Bank

Explanation

The Oudh Commercial Bank, established in 1881 in Faizabad, was the first bank in India with limited liability managed by an Indian board of directors. While it was managed by Indians, the capital was not entirely Indian. In contrast, the Punjab National Bank, founded in 1894, was the first bank purely managed by Indians with Indian capital. Therefore, based on the specific criteria of limited liability and the founding year of 1881, Oudh Commercial Bank is the historically accurate answer.
economy: In India, the first bank of limited liability managed by Indians and founded in 1881 was
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