Skip to main content

Banking law

 History of Banking law


Banking is one among the oldest industries and banking within the type that we all know of began at concerning 2000BC of the traditional world. 

It started with merchants creating grain loans to farmers and traders whereas carrying merchandise between cities. Since then, the banking system has evolved from a oversimplified barter system and gift economies of earlier times to fashionable advanced, globalized, technology-driven, and internet-based e-banking model.


Pre-independence era

Banking in its crude from is as previous as authentic history. All throughout the amount of India history, autochthonous bankers and cash lenders area unit recorded to possess existed and carried on the business of banking and cash disposition on an oversized scale. 

Between 2000 and 1400 B.C. throughout the religious text amount records of deposits and disposition area unit found. far-famed Hindu Law provided Manu has controlled the matter of deposits and pledges in section of his work.


According to Manu – “a wise man ought to deposit has cash with someone of excellent family, or smart conduct, can be conversant in the Law, veracious, having several relatives, affluent and honourable”. Reference is additionally created to identical in Kautilya’s Arthashastra. 

During smriti era – Banking business was carried on by the individuals of Vaishya community by acceptive deposits and granting advances


During Buddhist era – cash disposition business was well unfolded. though Buddha and Mahaveer thought of cash disposition as a sin and denounced it.


During Muslim era – we are able to see the presence of such establishments. throughout the reign of Feroz Shah of Iran (1356-81), Imperial Gazetteers were gift World Health Organization borrowed massive sums of cash from a banker of metropolis for payment to his army. The banking business of Agency House that survived and continuing to hold on trade and banking along was increasingly confiscated by the Presidency Banks. The 3 Presidency Banks   viz.:


i. The Bank of Bengal (1809);

ii. The Bank of Mumbai (1840); and

iii. The Bank of Madras (1843)


were established beneath the Charter of the East Indies Company. 

These Banks acted as banker to the East Indies Company at city, city and Madras and performed Central Banking functions for his or her various areas.



A Post-Independence era

At the time, when India got independence, all the major banks of the country were led privately which was a cause of concern as the people belonging to rural areas were still dependent on money lenders for financial assistance With associate aim to unravel this downside, the then Government determined to nationalise the Banks. These banks were nationalised beneath the Banking Regulation Act, 1949. Whereas the depository financial institution of India was nationalised in 1949.


RBI 

established on first Jan 1935 beneath the act of depository financial institution of India Act, 1934. Once the banks were established within the country, regular observation and laws got to be followed to continue the profits provided by the banking sector. The last part or the continued part of the banking sector development plays a major role.

To provide stability and gain to the Nationalised Public sector Banks, the govt determined to line up a committee beneath the leadership of Shri. M Narasimham to manage the varied reforms within the Indian banking system.


Comments

Popular posts from this blog

Key Legal Services for Indian Startups!

  Key Legal Services for Indian Startups! Starting your dream business? Law firms in India offer a range of essential services to keep your startup legally secure from day one! #StartupsInIndia #LegalServices #BusinessSuccess Corporate Governance : Law firms help you set up solid governance policies, ensuring smooth operations and compliance with corporate laws. #CorporateGovernance #BusinessCompliance #StartupSuccess Debt Recovery : Struggling with unpaid invoices? Law firms assist in debt recovery, ensuring you get what’s owed without legal hassles. #DebtRecovery #LegalSupport #CashFlow Shareholder Agreements : Protect your startup with clear, legally binding shareholder agreements that prevent disputes and protect interests. #ShareholderAgreements #LegalSecurity #BusinessPartnerships Startup Mentorship : Some law firms go beyond legal services, offering mentorship and business advisory support to help your startup grow strategically. #StartupMentorship #BusinessAdvisory #LegalGu...

The Benefits of Monthly Bookkeeping vs. Quarterly Bookkeeping

  The Benefits of Monthly Bookkeeping vs. Quarterly Bookkeeping In the world of small business management, effective bookkeeping is key to financial success. It ensures that your records are up-to-date, accurate, and compliant with tax regulations, while also offering a clear view of your business’s financial health. Yet, one question that many business owners face is whether to conduct bookkeeping on a monthly or quarterly basis. Both methods have their pros and cons, and the right choice often depends on the specific needs of your business. In this article, we will explore the benefits of monthly bookkeeping versus quarterly bookkeeping, providing insights to help you make the best decision for your business. Understanding Bookkeeping Frequency Before diving into the benefits of monthly and quarterly bookkeeping, it’s essential to understand what each method entails: • Monthly Bookkeeping: In this approach, financial records are updated every month. Transactions, such as expens...

The Future of Identity Verification: Exploring ID Scanning Software

  The Future of Identity Verification: Exploring ID Scanning Software In an increasingly digital world, the need for secure and efficient identity verification has never been more crucial. ID scanning software has emerged as a powerful tool that enhances both security and user convenience, facilitating a seamless experience for businesses and individuals alike. This technology not only streamlines processes but also mitigates the risks associated with identity fraud, making it an indispensable asset across various industries. ID scanning software utilizes advanced Optical Character Recognition (OCR) technology to quickly and accurately capture data from identification documents such as driver’s licenses, passports, and ID cards. This rapid processing capability significantly reduces waiting times for customers, a key factor in enhancing user experience in sectors such as banking, travel, and hospitality. One of the most remarkable features of ID scanning software is its ability to ...