The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 june 1806. pursuant to the provisions of the State Bank of India act of 1955, the Reserve Bank of India, which is India's Central Bank, acquired a controlling interest in the imperial bank of india.

in 2008, the Government of India acquired the reserve bank of india's stake in sbi so as to remove any conflict of interest because the rbi is the country's banking regulatory authority.

This made SBI subsidiaries of eight that had belonged to princely states prior to their nationalization and operatonal take-over between September 1959 and October 1960, which made eight state banks associates of SBI.

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