"I'm very proud indeed," Banks told BBC Radio Stoke. "To be honoured in this way after all these years is a wonderful achievement."
Legendary Port Vale defender Roy Sproson was also inducted into the Hall of Fame at the ceremony on Wednesday.
Banks, 73, joined Stoke from Leicester City for ?52,000 in 1967, a year after winning the World Cup with England.
Gordon Banks played 246 games for Stoke and won 73 England capsIn all, he made 246 appearances in five years with the Potters, before losing the sight in his right eye in a car accident, which prematurely ended his playing career in England.
"It was great to receive things when I played professional football," continued Banks, who is currently the president of Stoke City.
"You don't know what's going to happen when you turn professional, whether you're going to be a success or a failure.
"I was fortunate enough to play in some good teams that got us success and then I got introduced into the national team.
"Then playing in the World Cup and winning the World Cup was like a dream come true really.
"It's fantastic for the family, these are the things they will remember, but for me as an individual it's another wonderful honour for me."
Sproson, who died in 1997 at the age of 66, made a club record 837 appearances in a 22-year playing career at Vale and also spent four years as manager at Vale Park.
"If Roy had been with us, he would have been immensely proud," Roy's nephew Phil, who played almost 500 games for Port Vale, said.
"It's a special day for the family because it's not every day you get something like this.
"It's great for the Port Vale side of Stoke-on-Trent because, for a long time, Vale have had to live in the shadow of Stoke City.
"But at times we've come to the surface and shown what we're made of. It's great to have recognition. Roy represents Port Vale, he is Port Vale."
Banks and Sproson are the third and fourth men to be inducted into the City of Stoke-on-Trent Hall of Fame.
Football legend Sir Stanley Matthews and 15-time world darts champion Phil Taylor were the first inductees in January 2010.
Source: BBC Sport
Source: BBC Sport