Phase I –Pre-independence Phase (up to 1947) India had centuries old tradition of indigenous Banking.
There existed many evidences showing that
the concept of Banking was not new to India.
As Chanakya’s Arthashashtra about !!!
B.C. showed facts that Banking was already there in powerful existence in India. Bank of Hindustan to Presidency Banks The Bank of "industan was established in #$$! and due to the %nancial crisis& it was closed in #'(.
)mergence of three *residency Banks+ Bank
of Bengal ,#'!-& Bank of Bombay ,#'/! with a capital of 0s.1( lakhs& and Bank of 2adras ,#'/ Bank of Cacutta The Bank of Cacutta was founded on ( 4une #'!5& mainly to fund 6eneral 7ellesley8s wars against Tipu 9ultan and the 2arathas.
It was the %rst bank of India and was
renamed Bank of Bengal on ( 4anuary #'!-. Bank of 2adras The Bank of 2adras was one of India8s three *residency Banks.
The Bank of 2adras was formed in #'/ as
a :oint stock company with a capital of million.