Bank is an important part of our life today. They have become so important that without them we cannot even imagine our financial management. The history of our country's banks, which are bringing modern and new technology every day, is no less interesting. If seen from the general definition of banks, there has been existence of agencies that save money and pay interest on them since Rigvedic period. The origins of banking in India can also be traced back to the ancient Mahajan tradition, who used to lend money to people in times of need and transfer their money to them through hawala while traveling abroad and in return for some money. used to collect.

Similar institutions are also mentioned during trade transactions with Egypt and other such ancient civilizations, but there is not much research and reference material available on them. Modern banking which we are using today, its present form is basically the contribution of Europeans and even today most of the new experiments in this system are being done by them.

Banking system in ancient India or History:

In ancient India, when civilization was at its peak, opulence and money were everywhere. In such a situation, there was a need for an institution like a bank to manage money.
There is a mention of a post named Kusidin in the Vedas, who used to manage money at that time. It is mentioned in the sources and even in the Jatakas.
It is understandable from this that this manager of wealth remained the main source of transactions between people for about 1600 years from 2000 BC to 400 BC.

In the meantime, mention of the demise or evils of this institution was also being found in these sources, which shows that their credibility was affected over time and they ended in time.
The mention of lending on interest also comes to the fore in the natives, the agreement to be given for lending is mentioned here like a letter of credit or loan page.
Kautilya also mentions these debt papers in his book Arthashastra, he addresses it as loan article.

By the time of Maurya period, the state power starts doing banking work, the evidence of this comes to the fore. It is mentioned that the state used to give promise letters to the merchants to pay the money through order letters.
This practice was later adopted by the merchants as well and by 185 BC, such promise letters came into common practice.

Banking System in Medieval India:

The debentures which came into vogue during the Maurya period remained in vogue in the medieval period especially till the Mughal period and were used extensively.
Two types of debentures are mentioned in Mughal documents, document-e Indutlab was issued on demand whereas document-e could be cashed only after a specified period, it was like fixed deposits of that era.
These documents were issued only from the royal treasury but parallel to this another system was born which was also called Mahajani.
In this, a person used to collect arbitrary interest by lending money. It was during this period that merchants started using Hundi for the first time for foreign trade, which can be said to be an ancient form of a kind of credit card.

Modern Banking System in India:

The beginning of modern banking in India can be traced back to the beginning of the colonial period in this country, when the Dutch, British and French came to India for the purpose of trade about 200 years ago.
Out of these, only the British got the opportunity to set foot here. Along with trade, he needed a bank to manage his income and currency, and the British East India Company first laid the foundation of 3 banks in India.
Since the influence of the British first increased in Bengal itself, the first bank was opened in Bengal itself in the name of 1809 Bank of Bengal.

After this, he started the Bank of Bombay in 1840 and the Bank of Madras in 1843 in his other areas of influence in Bombay and Madras Presidencies. After the revolution of 1857, when the East India Company was abolished in India and the rule came directly under the Queen of Britain, these three banks were merged and given the new name Imperial Bank.
This Imperial Bank became the main bank of India after independence, which was changed to State Bank of India in 1955. It was a public sector bank of India.

How many types of banking run the world's economy?

If you are asked to tell about a bank, then you will think the same, a place where you keep your money safe and do financial transactions. But here you are right but very limited. Yes sir, apart from this common transaction, there is much more in the form of banking in the whole world. The functions of banking are also different and the medium of serving them is also very different. You may not have even heard the name of some of these banks. Some of them are being told here, so that you know how important role our banks play in the world economy.

Banking in India after independence:

As a country, the Government of India felt the need of an institution to regulate banking institutions and also to manage the government currency, then in 1949 the Reserve Bank of India was nationalized and its role as a central bank even after independence. kept as it is.

The Reserve Bank was also given all the powers to regulate banking in India. After this, a major change came in the banking sector of India when the Government of India through the State Bank of India Act in 1959 nationalized eight regional banks of the country and made them a subsidiary of State Bank of India.

Inspired by this successful nationalization, the Government of India took a similar step on 19 July 1969 and nationalized fourteen major banks of the country.
This was a bigger step than before, it increased the credibility of Indian banks and strengthened the Indian banking system.

After this, after a long time, on 15 April 1980, six private banks were nationalized.
The Indian banking sector took a big leap in 1993 when the Reserve Bank of India allowed domestic banks to carry out banking activities and private sector banks also started offering their services to the Indian public like public banks.

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