HISTORY & IMPORTANCE OF BANKING

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This is my first article which will be expressing good THOUGHTS on the subject having a  important role in moving our SOCIETY in right direction. So now its BANK whose basic meaning can be considered as  a AGENT between the PEOPLE and  the CASH and one of the tool of RBI in regulating cash flow in the market. So here i go to discuss in detail.

In the historical period, there is nothing like banking exist among people but the  rich people do exist who used to give loan to the needy  people at their own decided interest rate. Since their interest rates were too high, sometimes it was very difficult for loan taker to return amount in pre-decided time and hence reluctantly lose everything. As time passed several bank came into existence but their functioning did not suit people. Its solution came in 1935 when RBI was formed . RBI as a powerful authority  acted as “BAAP” of all banks came with RBI ACTS  ,  which describe rules which ought to be followed by all banks in india. Another major step in development of bank was taken by the nationalization of all major banks of india in 1949 and 1980 which means government owned banks  major shares or all banks  have to follow the RBI policies.

This was just the start of banks in india , now ,as days are passing ,banks are being professionally groomed by various economist  with a aim of achieving digital banking process even though there are lot of areas which demands large improvement. I think this the clear image about bank’s background and its working.

The most important thing for bank is its contribution to the society. Firstly , it allows people to have a habit of SAVING money by various deposit scheme of banks with a nice interest on deposit in safe mode instead of lending money to people in unsafe mode just for the sake of high interest rate. and also allows people to have hurdle less withdraw and transfer of their money. Secondly , it allows GOVERNMENT to get information of income of every account holder. If there is all Cashless transactions and Pan card attach to each and every account holder , there will be no chance of Blackmoney in india. Finally , if this is all happens , government will get proper tax and use it for the development of people’s welfare and ultimately it will improve NATION ECONOMY . With this approach , Banks can be very beneficial for one’s nation.

The few lines i got about banking that is worth to discuss:

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
-HENRY FORD

  These are my thought which i come across and i think its better to search such hidden thought and explore to give new dimension to our thought. Looking forward to your postive response on SEARCHINGTHOUGHT.WORDPRESS.COM

 

 

 

 

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