Modern Banking Case Study

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Ritika Gauba (2012)1 in her study reveled that the concept of modern banking was first traced in medieval Florence in 1397. A powerful merchant family named Medici established a network of shops that allowed patrons to place money on account and withdraw the money in another city that had a Medici representative. Many affluent families and the Church kept their money in Medici banks. This allowed rich people to travel without taking large sums of money with them, this reduced the risk of robbery while travelling. Banking continued to gain popularity throughout Europe by 1700. Nearly every country in Europe had some form of established banking. Modern banking has come a very long way from those humble beginnings in Florence. Banking…show more content…
85‐97. 1.2 Evolution of Banking in India "A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people" - A. Subba Rao Pai founder of Canara bank The banking system in India is as old as early Vedic period. The book of Manu contains reference regarding deposits advances, pledge policy of loan, and rate of interest. From the beginning of 20th century banking has been so developed that in fact, has come to be called “LIFE BLOOD” of trade and commerce.3 Charan Singh et. al.4 (2014) Banking sector in India dates back to 18th century with the establishment of Bank of Hindustan in 1770 followed…show more content…
N. (2007), Indian Banking and Finance – A Paradigm Shift 3 Satish Munjal, ‘Banking Operations’, Print well Publishers, Jaipur, 1990 4 Charan Singh, Namrata, Gaurav, “Impact of Foreign Banks on the Indian Economy”, working paper 451, In India, banking has developed from the primitive stage to the modern system of banking in a manner which has no parallel example in the world history. With the dawn of independence, changes of vast magnitude have taken place in India. After independence India launched a process of planned economic activity in order to overcome problems it had faced as an underdeveloped nation. Increasing tempo of economic activities lead to remarkable increase in the volume and complexity of banking activity. Therefore, banks need to expand their areas of activities that too at a fast pace due to socio- economic revolution. Indian banks have assumed new responsibilities in the fields of • geographical expansion, functional diversification and personal portfolio. Indian banking transformed itself from ‘Class banking to Mass banking’5. A banking sector performs three Primary functions in an economy:

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