run · 1 January 1938
South Indian banking crisis faces a run
Heavy withdrawals of deposits across South India following the TNQ failure
VerifiedOfficial record. Source: RBIH1 ch. 6
run · 1 January 1938
Heavy withdrawals of deposits across South India following the TNQ failure
VerifiedOfficial record. Source: RBIH1 ch. 6
suspended · 21 June 1938
Deposits Rs 3.5 crore; 75 branches
Suspended payment after an unprecedented run that began in April 1938
VerifiedOfficial record. Source: RBIH1 ch. 6
Travancore National and Quilon Bank · scandal · 1 July 1938
Rs 26.5 lakh of insider lending
RBI Special Officer's preliminary report: nearly all easily realisable securities had been realised during the April–May run; the 31 Dec 1937 balance sheet was incorrect; the bank was buying its own shares; it was speculating in stocks and shares; directors and interested parties had borrowed Rs 26½ lakh on inadequate or clean security
VerifiedOfficial record. Source: RBIH1 ch. 6
Indian Companies Act · regulation · 1 February 1938
At the Reserve Bank's instance the Central Government amended the Indian Companies Act to require non-scheduled banks to submit an additional copy of their returns (cash reserve returns, balance sheets) to the Registrars of Joint-Stock Companies for transmission to the RBI
VerifiedOfficial record. Source: RBIH1 ch. 5
Non-scheduled banks · 1 November 1938
RBI circular to non-scheduled banks with paid-up capital and reserves of Rs 50,000 and over, asking whether they would voluntarily place information before the Bank
VerifiedOfficial record. Source: RBIH1 ch. 5
Travancore National and Quilon Bank · scandal · 1 July 1938
Rs 26.5 lakh of insider lending
RBI Special Officer's preliminary report (third week of July 1938): nearly all easily realisable securities had been realised during the April–May run; the balance sheet as on 31 December 1937 was incorrect; the bank was buying its own shares presumably to keep up their market value; it was speculating in stocks and shares; and directors and interested parties had borrowed Rs 26½ lakh on inadequate or clean security.
VerifiedOfficial record. Source: Reserve Bank of India, History of the Reserve Bank of India, Vol. I (Bombay, 1970), pp. 184–187 (archive.org)
Non-scheduled banks
Non-scheduled banks required to submit an additional copy of their returns (cash reserve returns, balance sheets, etc.) to the Registrars of Joint-Stock Companies for transmission to the Reserve Bank
VerifiedOfficial record. Source: RBIH1 ch. 5