Banking in India : Origin & Evolution

ORIGIN AND EVOLUTION OF INDIAN BANKING Opinions differ as to the tune of the work stubting. The give voice Bank is said to be of Germanic origin, cognate with the French formulate Banque and the Italian word Banca, both(prenominal) substance bench. It is surmised that the word would have drawn its meaning from the practice session of the Jewish mvirtuosoy-changers of Lombardy, a district in jointure Italy, who in the middle ages used to do their business sit down on a bench in the market place. Again, the etymological origin of the word gains further relevance from the derivation of the word Bankrupt from the French word Banque route and the Italian word Banca-rotta meaning Broken bench due probably to the therefore prevalent practice of breaking the bench of the money-changer, when he failed. Banking is diametric from money- alter but two terms have in practice been taken to convey the same meaning. Banking has two important functions to perform, one of accepting deposits and other of lending monies and/or investment of funds.

It follows from the above that the rates of interest allowed on deposits and charged on advances mustiness be known and reasonable. The money-lender advances money out of his own undercover wealth hardly accepts deposits and usually charges high rates of interest. to a greater extent often, the rates of interest relate to the needs of the borrower. Money-lending was practised in all countries including India, much earlier than the recent type of Banking came on scene. DEFINITION AS PER BANKING REGULATION ACT 1949 A Bank borrow by accepting deposits of money from the public, the deposits are to be repaid on demand or after fixed period. They can be withdrawn by the depositors by means of cheque, draft, pronounce or any other way. A Bank accepts deposits (i.e. borrows) for the purposes of lending mainly to traders, industrialists and manufacturers and the like as also,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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