Banking System Type and Bank History in India

The bank is an important part of our life today. They become so important that without them, they cannot even imagine our financial management. The history of our State Bank, which has modern technology and only daily, is no less interesting. As per the general definition of a bank, a bank is an institution that saves money and pays the interest during a periodic period. The origin of banking services in India can also be traced back to the ancient Mahajan tradition, which lent people when necessary and transferred their money through hawala while traveling abroad and in exchange for money. Used to collect

A similar institution was also mentioned during commercial transactions with Egypt and other older civilizations, but few research and reference documents were available. The modern bank that we use today in its current form is a contribution of Europeans, and yet most of the new experience of the system has been done by them.

Banking System in India or Ancient History:

In ancient India, when civilization was at its peak, luxury and wealth were everywhere. Institutions and banks are required to manage the funds in such a situation.

The Veda mentions a poem named Kushi Din, which used to manage money then. It is mentioned in the source and also in the original.
We can understand that this silver manager remained the main source of transactions between people for about 1600 years, from 2000 BC to 400 BC.

Meanwhile, destruction or crime of this institution was also found in these sources, which suggests that their credibility has been affected from time to time, and they were terminated in time.

Loans on interest are also reflected on the surface of indigenous peoples; The loan agreement is mentioned here, as is the letter of credit or loan.

Kautilya also mentioned that he had removed these beginnings as a loan article in his Economy book.

During the Maurya period, state power banking began functioning; this evidence returned to the surface. It was said that the state was used to promise merchants to pay money through an order letter.

Merchants then adopted the practice, and in 185 BC, such promises were incorporated into common practices.

Banking System in Medieval India:

Debate, popular during the Mauryan period, remained fashionable in medieval times, especially until the Mughal period, and became widely used.

The Moghole document mentions two types of debt securities; Document-e is issued on an Indutlabs request basis, whereas the document can be exchanged only after a specified period; It is like a fixed deposit at that time.

These documents were issued only from the imperial finance ministry, but the Mahajan was born in parallel with other systems.

In such a situation, someone used to collect arbitrary flowers by lending money. During this period, merchants began to use the bill for foreign trade, which can be said to be an older form of a credit card.

Modern Banking System in India:

The first modern banks in India can be traced back to the beginning of the colonial period in this country when the Netherlands, Great Britain, and France came to India for commercial purposes about 200 years ago.
It only gives the British a chance to set foot here. In addition to business, he needed a bank to manage his income, and his motto and the first

British Indian company laid the basics of 3 banks in India.

Since the influence of the British increased in Bengal for the first time, the first bank was opened in Bengal in 1809 Bank of Bengal.

After that, he started at the Bank of Bombay in 1840 and the Bank of Madras in 1843 in President Bombay and Madras, among other influences. After the Revolution of 1857, when East Indian society was abolished in India and the government came directly under the Queen of England, the three banks were amalgamated with a new name, the Imperial Bank.
This Royal Bank became the main bank of India after independence, which was changed to the State Bank of India in 1955. It was a bank in the Indian public sector.

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

If you are asked to speak about a bank, you will only assume that you keep your money safe and conduct financial transactions. Yes, sir, whatever it is a normal transaction, it is more like a bank worldwide. The banking job is also different, and the media that serves them is very different. You may not have heard the names of some of these banks. Some of them have been reported here, so you know how important the role played by our bank in the world economy is.

Banking in India after independence:

As a country, the Indian government has assumed that institutions regulate banking institutions and manage government currency; The Reserve Bank of India was nationalized in 1949 and also played as the central bank after independence. Stored like this.
The Banking Reserve has all the forces to regulate the banks in India. After that, the Indian banking sector underwent major changes when the Government of India, through the Act of the State Bank of India in 1959 nationalized eight regional banks in the country and made them a subsidiary of the State Bank of India.

Inspired by this successful nationalization, the Government of India took a similar platform on July 19, 1969 and nationalized fourteen major banks in the country.

This is a huge step forward; This increases the credibility of Indian banks and strengthens the Indian banking system.

On April 15, 1980, six private banks were nationalized after a long time.

The Indian banking sector took a major leap in 1993 when the Bank of India Reserve allowed national banks to carry out banking activities. Private sector banks, such as commercial banks, have also started serving the Indian public.

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