Its memorandum was ratified by Finance Committee of National Assembly on 4th of July 1928 and on 10th of September 1928, Bank Melli officially started its operations in Tehran. Based on memorandum of the bank, Bank Melli Iran was recognized as a public company and a legal entity regulated by commercial rules and regulations.
Initial capital of bank consisted of Rials 20 million of which only Rials 8,000,000 was paid up.
In 1935, capital of the bank was increased to Rials 300,000,000 and again in 1952 the capital was raised to Rials 2 billion, which was totally paid up. In the very beginning of establishment, the bank had only 2 branches, one in Tehran Bazaar and another in Bushehr port. Bushehr was then one of the leading commercial ports of Iran. The first representative office of Bank Melli Iran abroad was established in Hamburg in 1948.
Until 1959, Bank Melli Iran was assigned with Central Bank duties including printing banknotes and regulating monetary flow in the country. In 1959 the bill for Memorandum of Iran Banking and Monetary Policy was ratified by National Assembly and from 09thAugust 1960, duties of Central Bank were removed from Bank Melli Iran
and Central Bank of Iran was established with a capital of Rials 3.6 billion.
After the Islamic Revolution and establishment of Islamic Republic system in Iran, banking system was changed abolishing usury and banking based on Islamic teachings was introduced. A non-usury banking operation Act was ratified and advised to the banks in 1983. The executive instructions and by-laws were prepared
and executed in Bank Melli Iran from 20 March of 1984.