19 Questions
What was the main purpose of the Hundis and the Adatis in ancient India?
To provide credit and remittance services
What was the name of the first publicly owned bank in India?
Bank of Bengal
What was the primary objective of the Reserve Bank of India when it was established in 1935?
To regulate the banking system
What was the characteristic of the Indian economy during the British era?
A dual banking system
What was the approximate interest rate prevalent during the Vedic period?
10% to 20% per annum
What was the significance of the Manusmriti in ancient Indian banking?
It mentioned the concept of banking and the rules governing it
What was the name of the first bank established in India?
Bank of Hindustan
What was the impact of the nationalization of banks in 1969?
It increased government control over the banking sector
What was the characteristic of the British banks in India during the British era?
They dominated the Indian banking sector
Who established the Bank of Hindustan in 1770?
Alexander & Co.
What was the role of the East India Company in the development of banking in India?
It played a significant role in the development of banking in India
What were the Presidency Banks established in?
Three presidency towns of India
What was the Bank of Bengal established in?
1806
What was the result of merging the three Presidency Banks?
The creation of the Imperial Bank of India
What was the significance of the Punjab National Bank and the Bank of India?
They played a significant role in promoting Indian entrepreneurship and industry
When was the Imperial Bank of India established?
1921
What was the purpose of the Presidency Banks?
To cater to the needs of the British government and the EIC
What was the Bank of Hindustan's fate?
It failed in 1782
What was the significance of the Bank of Bengal?
It later became the Imperial Bank of India
Study Notes
Ancient Indian Banking
- The history of banking in India dates back to the Vedic period (1500 BCE - 500 BCE)
- During this time, merchants and traders used to lend money to each other and to the rulers
- The concept of interest was also prevalent, with rates ranging from 10% to 20% per annum
- The Manusmriti, a Hindu scripture, mentions the concept of banking and the rules governing it
- The practice of banking was also mentioned in the Arthashastra, a treatise on statecraft and economics written by Kautilya
- Indigenous banking systems, such as the Hundis and the Adatis, were used for credit and remittance purposes
British Era Banking
- The modern banking system in India was introduced by the British in the 18th century
- The first bank in India was the Bank of Hindustan, established in 1770 by the British
- The Bank of Bengal, established in 1806, was the first publicly owned bank in India
- The Indian economy during the British era was characterized by a dual banking system, with both British and Indian banks operating simultaneously
- The British banks, such as the HSBC and the Standard Chartered, dominated the Indian banking sector
- The Reserve Bank of India (RBI) was established in 1935 as the central bank of India, with the primary objective of regulating the banking system
- The RBI played a crucial role in shaping the banking sector in India, including the nationalization of banks in 1969 and the liberalization of the sector in the 1990s
Test your knowledge of the history of banking in India, from the ancient Vedic period to the modern era of British influence and the establishment of the Reserve Bank of India. Learn about the evolution of banking systems and institutions in India.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
