Banking System Type and Bank History in India

Banking System Type

Banking System Type is an important part of our life today. Banking System Type 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. By the general definition, a bank is an institution that saves money and pays interest throughout rigging. The old tradition of Mahajan can also be traced back to the origin of banking in India, which lent to people when necessary and transferred their money through hawala while traveling abroad and in exchange for money. I used to collect

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

The Banking System Types & Bank History in ancient India :

In ancient India, when civilization was at its peak, luxury and wealth were everywhere. Institutions such as banks are needed to manage the money in this situation.

The ban mentions a poem named Kushi Din, which used to manage money then. Mention of him is also found in the source and the original.

This money administrator has been the main source of transactions between people for about 1600 years from 2000A. C. to 400 A. C.

Meanwhile, the destruction or crime of this institution was also found in these sources, suggesting that its credibility was periodically affected and ended in time.

A debt of interest is also reflected on the surface among indigenous peoples; Here, the agreement for the loan is mentioned, such as a letter of credit or letter of credit.

Kautilya also mentions that he ended these debates in the form of a loan article in his book Arthashastra.

During the Maurya period, the state power began to perform banking functions; This evidence reached the surface. It was said that the state was used to promise merchants to pay money through an order letter.
Merchants adopted this practice, and in 185 A.D. c., such promises were incorporated into common practices.

Also Read, The Complete Guide to Bookkeeping for Small Business Owners.

Banking System Type in Medieval India:

Popular obituaries remained fashionable throughout the medieval period, especially until the Mogol period, and became widely used during the Maurya period.

The Mogol document mentions two types of loan values; DocuSign-e is issued to IndutLabs on demand, 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 Ministry of Finance, but they arose 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 Type in India:

Early modern banking in India can be traced back to the beginning of the colonial period in this country when the Netherlands, Great Britain, and France arrived in India for commercial purposes some 200 years ago.

It only allows the British to set foot here. Together with the business, they needed a bank to manage their income and currency, and the first British Indian company held the bases of 3 banks in India.

As the influence of the British first increased in Bengal, the first bank was inaugurated in 1809 by the Bank of Beber in Bengal.

After that, it began with the Bank of Bombay in 1840 and the Bank of Madras in 1843 under Presidential Bombay and Madras, among other influences.

After the Revolution of 1857, when the East Indian Company in India was abolished and the government passed directly under the Queen of England, the three banks amalgamated with a new name, the Imperial Bank

This Royal Bank became the main bank of India after independence, which became the State Bank of India in 1955.

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

f you are asked to speak about a bank, you will only assume that you keep your money safe and conduct financial transactions. Yes, gosh, regardless of this common transaction, there are more in the form of banking worldwide.

The work of banking is also different, and the media serving them are very different. You should not have heard the names of some of these banks. Some of them were mentioned here, so you know how important our bank is to the world economy.

Banking in India after independence:

As a country, the Government of India felt the need for institutions to regulate banking institutions and manage government currency; The Bank of the Reserve was nationalized in 1949 and also played as a central bank after independence. Stored in this way.

Bank Reserve has got all the forces to regulate banks in India. Subsequently, significant changes took place in the Indian banking sector when the Government of India, through the State Bank of India Act in 1959, nationalized the country’s eight regional banks and made them subsidiaries of the State Bank of India.

Inspired by this successful nationalization, the Government of India took a similar step on July 19, 1969 and nationalized the country’s fourteen main banks.

This is a great move that was earlier; 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 also started serving the Indian public like commercial banks.

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