History and evolution of banking sector in india

The Company celebrated its 16th birthday on August 24,by purchasing the plot of land situated at 37, Chowringhee, now renamed J. Nehru Road Kolkata, for the sum of RsThis decision of the Company was historic in more ways than one.

History and evolution of banking sector in india

Read this article to learn about the evolution, origin and growth of banking! It referred to a bench for keeping, lending, and exchanging of money or coins in the market place by money lenders and money changers.

Chanakya in his Arthashastra written in about B. The Jain scriptures mention the names of two bankers who built the famous Dilware Temples of Mount Abu during and A. The bankers of Lombardy were famous in England. But modern banking began with the English goldsmiths only after But the first bank in the modern sense was established in the Bengal Presidency as the Bank of Bengal in Their trading activities required the remittances of money from one place to another.

The next stage in the growth of banking was the goldsmith. The business of goldsmith was such that he had to take special precautions against theft of gold and jewellery. If he seemed to be an honest person, merchants in the neighbourhood started leaving their bullion, money and ornaments in his care.

History and evolution of banking sector in india

As this practice spread, the goldsmith started charging something for taking care of the money and bullion. As evidence for receiving valuables, he issues a receipt.

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Since gold and silver coins had no marks of the owner, the goldsmith started lending them. As the goldsmith was prepared to give the holder of the receipt and equal amount of money on demand, the goldsmith receipt became like cheques as a medium of exchange and a means of payment.

The next stage in the growth of banking is the moneylender. The goldsmith found that on an average the withdrawals of coins were much less than the deposits with him. So he started advancing the coins on loan by charging interest.

As a safeguard, he kept some money in the reserve. Thus the goldsmith-money- lender became a banker who started performing the two functions of modern banking, that of accepting deposits and advancing loans.The history of banking began with the first prototype banks which were the merchants of the world, who made grain loans to farmers and traders who carried goods between cities.

This was around BC in Assyria, India and Sumeria. Dec 13,  · Fintech is a very broad sector with a long history. Most people hear fintech and think about the latest mobile app which can help them pay for their morning coffee without ever swiping a .

Allahabad Bank, established in – Allahabad Bank is the oldest Public Sector Bank in India having branches all over India and serving the customers for the last years. 2. Imperial Bank of India was later renamed in as the State Bank of India.

Journals in JSTOR Date Range Aboriginal History. Empowered by his views of a self-regulated economy, moneylenders and bankers managed to limit the state's involvement in the banking sector and the economy as a whole.

After the post economic liberalization and globalization, there has been a significant impact on the banking industry. Banking in India originated in the 18th century.

The oldest bank in existence in India is the State Bank of India, a government-owned bank in SBI .

The History of Banking Sector in India ( Words)