Preview

Role of Gramin Bank in the Development of Agriculture Sector

Better Essays
Open Document
Open Document
5389 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Role of Gramin Bank in the Development of Agriculture Sector
BANK

The word “bank” is derived from the word “Bancus or Banque” that is bench. Jews, who were considered to be the early bankers, transacted their business on benches in the market. As early as 2000 BC Babylonians had developed a system of banks. In ancient Greece and Rome the practice of granting credit was widely prevalent/traces of credit by compensation and by transfer orders are found is Assyria, Phoenicia and Egypt before the system attained full development in Greece and Rome. The books of the old Sanskrit lawgiver, Manu are full of regulation governing credit. He speaks of judicial proceedings in which credit instruments were called for, interest of loans on bankers and even of the renewal of commercial papers.

In Rome, the bankers were called Argentarii, Mensarii or Caooybistoe, the banks were called Tebernoe aregentarioe. Some of the banks carried business on their own account and others were appointed by the government to receive the taxes. They used to transact their business on similar lines as those of the modern bankers. People used to settle their accounts with their creditors by giving a cheque or draft on the bank. If the creditors had also an account at the same bank, the account was settled by an order to make the transfer of such money from one name to another. To pay money by a draft was known as prescribere and rescribere and the draft was known as atributio. These bankers also received deposits and lent money. Loan banks were also common in Rome. From these loan banks the poor citizens received loans without paying interest. They lent money for a period of three or four years on the security of land.

During the early periods, although the banking business was mostly done by private individuals, many countries established public banks either for the purpose of facilitating commerce or to serve the government. The bank of Venice, established in 1157, is supposed to be the most ancient bank. Originally, it was not a bank in the modern

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Thanks. I found the documentary "The Incredible Human Journey" very interesting. The video allowed me to see how we are very much alike. I also felt that it was interesting to see that our physical attributes are affected by our environment. Watching the documentary made me curious and had me wanting to know what scientist expect humans to evolve into.…

    • 198 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    The Medici Influence

    • 1234 Words
    • 5 Pages

    The Medici Bank was possibly the most prosperous and was definitely one of the most well respected institutions of its kind in all of Europe and it was most powerful financial institution during 15th century Europe. The Medici Bank was setup in 1397 by Giovanni di Becci de' Medici who managed the bank in Rome before moving to Florence.6 The Medici Bank used newly developed techniques such as records, double entry book keeping, bills of exchange and book transfers.7 They held deposits, made loans, dealt in bills of exchange, changed money and conducted business abroad.8…

    • 1234 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Philosophy of Business

    • 1640 Words
    • 7 Pages

    The First Bank of the United States was created to fix the debt caused by the Revolutionary war. Although the original intent of the First Bank was to finance the government, Alexander Hamilton decided to make it a commercial bank as well, meaning a for-profit bank. Although this allowed Hamilton to loan money to business owners, many argued this idea was unconstitutional as it allowed a private institution the power to tax and print money. Therefore, in 1811, having “taken care of the national debt,” Congress refused to renew the Bank’s charter (by one vote), causing it to shut down.…

    • 1640 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The Federal Reserve System

    • 4890 Words
    • 20 Pages

    Even before the creation of the Federal Reserve, banks were used by the public just as we use them today. Deposits were made into savings accounts. Loans were taken out to mortgage a home or finance a new business. Banknotes were issued and spent when the public borrowed from the banks. Borrowers spent these banknotes just as paper money is spent today. These bank notes were valued as money since they were backed by the promise that they would be exchanged on demand for either gold or silver.…

    • 4890 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    The first banks were probably the religious temples of the ancient world, and were probably established in the third millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended and well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants. Banking in fact is as primitive as human society, for ever since man come to realize. The importance of money as a median of exchange. The necessity of a controlling or regulating agency or institution was naturally felt.…

    • 1763 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    The first findings of Commercial Banking in the United States can be dated back to around 1781 with the establishment of the Bank of North America. In time the rise of Commercial Banking saw an increase in opportunities for wealthy individuals to become involved in entrepreneurial venture they would not involve themselves in without someone else to guarantee a return on the investment. Early banks acted as intermediaries for entrepreneurs who did not have enough means to fund their own investment ventures as well as entrepreneurs who were in fact capable of financing the venture but did not want to take on the risk of the investment. On second thought many despised the discriminatory practices regarding insider lending, they believed that government monopolization of money was a corrupt problem that would bankrupt the people, presuming that this centralization of power taken away from local banks was unhealthy to a sound monetary system and was mostly to the benefit of business interests in the commercial north, not to those interest of southern agricultural, clarifying that the right to own property would be infringed upon if such proposals were enforced. Those still indifferent contested that the creation of such a bank would violated the Constitution, which specifically stated that congress was to regulate weights (measurements) and issue coined money (rather than mint and bills of credit). The establishment of the bank also raised early questions of constitutionality in the new government. Other arguments came from James Madison, who believed Congress had not received the power to incorporate a bank, or any other governmental agency. His argument rested primarily on the Tenth Amendment: that all rights not endowed to Congress goes right to the States (the…

    • 4413 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Goldsmith Bankers

    • 1124 Words
    • 5 Pages

    Goldsmith Bankers and moneylenders were essential functions in all places where formal banking had not yet taken root. (Black, Reading 4-3, p.2) Edward Backwell was a prominent goldsmith banker during the seventeenth century who performed many functions that a bank would normally perform. He along with other goldsmith bankers assisted in laying the ground work for today’s formal banking system. In his dealings as a goldsmith banker he facilitated trade, funded the government, and provided money for the military. The evolution of the banking system brought with the change attributes that are good and attributes that are bad, as such there are advantages and disadvantages to the creation of a more formal banking system.…

    • 1124 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Ascent of Money

    • 1012 Words
    • 5 Pages

    The author, Niall Ferguson offers a comprehensive collection of anecdotes and observations about the development of finance. He begins with a brief discussion of pre-money societies. Then, he carries you through the birth of banking in Renaissance Italy, the 18th-century Mississippi and South Sea bubbles, the role of Nathan Mayer Rothschild in the Napoleonic Wars, and the 20th-century transition from the gold standard to free-market derivatives and currency trading. He reveals financial history as the essential back-story behind all history. The evolution of credit and debt was as important as any technological innovation in the rise of civilization, from ancient Babylon to the silver mines of Bolivia. Banks provided the material basis for the splendors of the Italian Renaissance, while the bond market was the decisive factor in conflicts from the Seven Years' War to the American Civil War.…

    • 1012 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Bibliography: 3. Chaikin, D. 2011, Bank as Depository and Bank’s Duties, CLAW 2204 at The University of Sydney, Semester 1.…

    • 1727 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Dishonour of Cheques

    • 22231 Words
    • 89 Pages

    The invention of banking preceded that of coinage. Banking originated in Ancient Mesopotamia where the royal palaces and temples provided secure places for the safe-keeping of grain and other commodities. Receipts came to be used for transfers not only to the original depositors but also to third parties. Eventually private houses in Mesopotamia also got involved in these banking operations and laws regulating them were included in the code of Hammurabi.…

    • 22231 Words
    • 89 Pages
    Good Essays
  • Powerful Essays

    The origin of banking in India is traceable in ancient time through the modern banking hardly 200 years old. The main functions of a bank are to accept deposits and grant loans. There are evidences of these functions being performed by a section o the community in the Vedic periods. There are many references of Debt in the Vedic Literature. During the Ramayana and Mahabharata eras banking, which was a side businesses during the Vedic period, became a full-time business activity for the people. During the Smriti period, the banking business was carried on by the members of the Vanish community and Manu speaks of earning through interest as the business of Vaishyas. He accepted deposits from the public, granted loans against pledges and personal security, granted simple open loans, acted as bailee for his customers, subscribed to public loans by granting loans to kings, acted as treasurer and banker to the state and managed the currency of the country. Indigenous bankers used to maintain a regular system of accounts and borrowers used to sign the loan deeds.…

    • 4656 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    The name bank derives from the Italian word banco "desk/bench", used during the Renaissance era by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth. However, traces of banking activity can be found even in ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome – that of the Imperial Mint.Commercial banks engage in the following activities:…

    • 10082 Words
    • 41 Pages
    Powerful Essays
  • Powerful Essays

    People depend for good introduction in Agro-Farming not only on good seeds, good fertilizers, good irrigation and good Agro-technology; but they need also short-term, medium and long term loans to meet their other demands at farm level in farming. This genuine situational scene has a power to present an impact of applied cooperative credit and banking on farmers in farming from the point of origin of the Indian Cooperative Credit (a facile credit) movement from the period of working of NIDISH in Madras Province in 1882 to 1904 till date. This is a good Genesis of this issue with a scientific periodicity which may be perused in following section.…

    • 1950 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Banking sector of Pakistan

    • 3485 Words
    • 14 Pages

    Bank is an organization, which transacts the money deposited from the people, and invests it in the business activities. And it has to repay money at the demand of the depositors. Cheque, draft order, ATMs etc. are the sources to repay the money to the depositors. Here are the some types of Banks, i.e.…

    • 3485 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    The Evolution of Banking

    • 2180 Words
    • 9 Pages

    Banks have been around since the first currencies were minted - perhaps even before in some form or another. Currency, particularly the use of coins, grew out of taxation. In the early days of ancient empire, a tax of on healthy pig per year might be reasonable, but as empires expanded, this type of payment became less desirable. Additionally, empires began to need a way to pay for foreign goods and services with something that could be exchanged more easily. Coins of varying sizes and metals served in the place of fragile, impermanent paper bills. (To read more about the origins of money, see What Is Money?, Cold Hard Cash Wars and From Barter To Banknotes.)…

    • 2180 Words
    • 9 Pages
    Powerful Essays

Related Topics