Evolution of Banking in India – All that you need to know!
How will you describe banking today?
If you put it simply, a “bank” is nothing but a middleman – creating a balance between demand and supply. It accepts money from “savers” and lends the same money to “borrowers”. A perfect match!
When you break it down like this, you realize this is nothing new. Traditionally called a “barter system”, this concept dates back to 6000 BC.
Soon, from bartering grains for salt, humans moved to bartering for some form of “money”. Believe it or not, archeology points to this evidence from India during 2000 BC.
It was inevitable that the first variant of a “bank” would turn up in a place concentrated with wealth – 14th century Italy! Some of these Italian marvels still exist today!
In fact, the word bank came from the French word “banque” meaning “table”. The exchange of money or goods primarily used to happen over tables, covered with green tablecloths. Cute, right?
Soon, modern banking came into the shores of India in the 18th century! Bank of Hindustan was established in 1770 but sadly liquidated soon after. Then the three musketeers (Bank of Calcutta, Bank of Bombay and Bank of Madras) got united to form the Imperial Bank of India in 1921. Today, it is known as the State Bank of India! Imperial Bank even acted as our central bank until RBI came into the picture in 1935.
Do you know what the objective of Imperial Bank was?
To inculcate a “banking habit”, something we are still trying to achieve nearly a hundred years later!
Remember the time when you had a cute little piggy bank where you used to save coins and notes from your parents and grandparents? With the advent of computers in the 1900s and smartphones in the 2000s, banking is now at the tip of your fingers. I’m sure you’re feeling a little nostalgic, isn’t it?
So here’s a little trip down memory lane.
At Niyo, we realize that in the year 2021, you deserve something better!
No paper.
No middlemen.
No commission.
And the best part? You get rewarded for saving! To celebrate your “banking habit”, you can directly invest your savings as well! Right from Niyo!
Come, let’s #DecodeBanking.
Authored by
Anirudha Basak
Bankonbasak.com
