Year: 2022 | Month: June | Volume 8 | Issue 1
A Study the Indigenous Bankers
DOI:10.30954/2454-4132.1.2022.1
Abstract:
By far the largest constituent of the Indian banking and credit system is the indigenous part. This part comprises (a) money-lenders in villages, and (b) indigenous bankers in towns and cities. Indigenous bankers, however, should be distinguished from the money lenders. The distinction arises out of the following points: (i) while indigenous bankers receive deposits and deal in hundis, the money-lenders do not do so; (ii) the former finance trade and industry, the latter mainly finance consumption; (iii) the former are more careful about the purposes of their loans than the latter; and (iv) repayment is more punctual and the rate of interest is generally lower in the case of the former. Despite these differences, the similarity is very great. Both of them are unorganised, both are scattered and are to be met with all over the country, and both have adapted themselves to the customs, habits, and needs of the people with whom they are in business relations, and business of both is very often a hereditary function and is carried on as a family concern.
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