In the modern era, Banking constitutes the fundamental basis of economic growth. the term is being used since longtime but there the benefits of using money as medium of exchange, people would deposits and make loans i.e. the modern commercial banks.
In India as early as Vedic Era, banking existing in its crude form. The words of “Manu” contain reference deposits, pledge policy of loans and rates of interest etc. The original banking operations were in the hands of indigenous banks who dominated the finance to the extent that they provide credit to the government of the day also.
The origin of the word” Bank” is shrouded in mystery. According to one viewpoint, the Italian business house carrying on crude form of banking were called “Banchi Bancheri” According to other viewpoints, the word bank is derived from German word “Banck” which means a heap or a mound. Subsequently Italians start edusing the name “Banco”. Which meant accumulationof either money or stock. In England, the issue of paper money by the government was refered to as raising a bank. But it can be safely assumed that the word bank is derived from Italian or German .
Definition of Bank
8