So we are beginning right at the start in ancient time to the 1700, now a lot of people will have said to you that sbi bc csp East Indian Company the Europeans brought the the banking system in India, but that is not fully true because our Vedas and sutras they mention usury,
so basically the usury they are actually exorbitant rates right now, however in the mediaeval times in the early times what used to happen that some classes of people were given loans by some money lenders and depending on your social class your interest rate was fixed,
so that was the system under the which ancient India used to have that loan system, so we used to have it from a long long time and they also have the mentions of these kinds of banking system in the jatakas dharma shastras and also Chanakya in his books he has mention loan deeds or the “rampart” or “Navlakha”,
so these were all the things that were mentioned in the mediaeval text that we have and this tells us that Banking In India had propagated quite a lot in those times as well, in fact in the 12th century Indians used to do banking that is widely known, even the important thing that had developed during that time were the Hundis,
so in the 12th century we used to have Hundis, which was basically credit instrument and many people believed that Hundis are the oldest credit instruments known to man and these Hundis basically used for trade transaction they were often used for transfer funds from one location to another location and they were also used to just pay of debts or they were used to take credit,
so they acted as bills of exchange as well, so the Hundis were very important instruments, Both Indian and Italian have started around the same time but the Indian history was almost wiped out we must remember these things,
Then we had in Mughal Era the loan deeds which were also known as the “datives” there were the different loan dead’s that the Mughals used to execute and and they used to have some authoritarian figure which would overseas the execution of these loans deeds,
and that is how the loan system actually promulgated, and these things were done in ancient India before the East India company set foot in India and after that we know most of the things, so in 1770 Bank of Hindustan was formed, M/S Alexander and company form bank of Hindustan,
in 1829 to 1832 during this time the bank was liquidated because of some crisis that had happened, in 1786 general Bank of India founded but this to failed in 1791, so both these banks they were the among the earliest official banks in India and then we go to the 1800s, so in the 1800s we seek lot of different parts of India opening up to banking they were the presidency banks and these banks were the among the first ones and which had widely gained the recognition, the first Presidency banks were,
it was the bank of Kolkata in Bengal which was founded in 1806 and later on the name bank of Calcutta was changed into Bank Of Bengal this was done in 1809, then we had the bank of Bombay which was established in 1840 Bank of Madras was established in 1843 so these were the three main Presidency banks that we had in India.
Few important bank accounts that need to be discussed about.
In this article, I am going to talk about escrow account what is an escrow account then we will talk about PPF (Public provident fund) account, Sukanya Sam Riddhi account, SCSS (senior citizen savings account) account, and lastly, we will talk about PMJDY (Pradhan Mantri Jan Dhan Yojana) account, so stick with me till the end,
What is an escrow account?
Don’t worry everybody asked this question, by definition what your escrow account is, there is four different parts that make up your mortgage payment csp registration online you have the principal which pays back the loan you have the interest which is the cost of borrowing the funds and then the other two to make up
your escrow account and that’s your property taxes and your homeowners insurance and usually clients will wrap that all into one payment and they will make one payment to the lender and then the lender decides when the insurance gets paid and when the tax is get paid in the year,
they go ahead and pay that on your behalf so when you make your mortgage payment the principal and interest portion go to the bank then your taxes and insurance go into an escrow account it’s kind of a fancy way of saying savings account, They take taxes and insurance portion payment and they put it into an account they hold it for you until that dough comes out for you homeowners insurance
which you select you can change your insurance at any time and then your property tax is the bill comes out at the end of the year when the lender gets the bill they go into your escrow account or your savings account and they pull the money out that you have been contributing to every single month and they pay that bill on your behalf so there are some clients that can waive the right to escrow and the some that can’t,
But I want you to get an understanding of your escrow account and when you close on your home loan the lender has to set up a deposit into the savings account on your behalf and the requirement is a three months reserve that has to be set up, upfront for this savings account that’s attached to your home mortgage,
Now we have a PPF account or you can say public provident fund so for 15 years your money is locked and every quarter the interest rate is changing so a maximum of 1.5 lakh you can deposit in the PPF account,
There is a Sukanya Sam Riddhi account this is for the girl child so if you have a girl child you can open the SSY account and after she comes to the age of after 18, 50% of the money you can be withdrawn then at 21 the rest of the money you can withdraw, so this is for helping the girl child it was part of the Beti Bacha Beti pasha movement that we had,
Then you have the SCSS account which is the senior citizen savings account so this is mainly for people who are above 60 and they are getting a lot more interest and the money is locked in for a longer amount of time,
Then you have the Pradhan Mantri Jan Dhan Yojana account so this is also something that prime minister Modi had come out with when he came to power, csp sbi so this account is also quite similar to the BSBDA account, but it has a 5000 rupee overdraft so the OD (Overdraft) facility is there it is also zero balance account and
you can get Repay debit card with it, maximum one lakh you can deposit and you are also getting insurance cover and accident cover in that account so that’s all about those three accounts types we have in the Indian banking sector, they are part of the small saving scheme account of the governments and I think that most of you already know about these things and also the PMJDY (Pradhan Mantri Jan Dhan Yojana) these things are common knowledge this is the entire structure of the types of accounts that be used in India.
So here we go I hope this article was informative for you, thank you.