people believe that it has come from a French word \u2018Banqui\u2019 and yet others believe that it has come from the Italian word \u2018Banca\u2019. Whatever it is, it referred to a bench for keeping , lending and exchanging of money or coins in the market place by money lenders and money changers.
although the practice of safe keeping and savings flourished in the temples of Babylon as early as 2000 BC.
trading in commodities than in money. Their trading activities required the remittance of money from one place to another. For this they issued \u2018hundis\u2019 to remit funds. In India such merchants were known as \u2018SETHS\u2019
business was such that he had to take special precaution against theft of gold and jewelry and if he seemed to be an honest person merchants and neighbours started leaving their bullion, money and ornaments in his care. As this practice spread the goldsmiths started charging something. As an evidence for receiving valuables he issued a receipt \u2013 these acted like cheques and were used as a medium of exchange. The GSm also lending money (Coins of G& Silver) as not all of them were demanded back at the same time.
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