Banking system of Nawab era in India

May 10th, 2009 - 9:27 pm ICT by ANI  

By Kamna Hajela

Lucknow, May 10 (ANI): Not many people today may have an idea how banking system, which also existed during the era of Nawabs, functioned and maintained its’ routine transactions.

In Lucknow, the history enthusiasts and others have been offered an opportunity to get an insight of the banking system prevailing during the Nawab era by Allahabad Bank by making public its ledgers between 1865-1900 and 1900-1950.

Nawabs were originally provincial governors or viceroy of a province during the reign when Mughal Empire used to rule India. Banking in that era was mainly for rich and famous so banks had a simple process to offer loans.

“If you go thorough our ledgers, you will find that in 1897 we had such

clients who had availed of Rs. 400 million loan. One can gauge the value of

this money as of now. During those days borrowers didn’t need to mortgage their properties or undergo complicated legal processes to avail loans,” said Hari Mohan, assistant manager, Allahabad Bank.

The Nawabs still remember the great personalized service they used to receive during that era.

“Earlier a great amount of personal attention was given to clients.

The moment you reached the bank, staff started to look after you. Bank

managers used to personally greet clients. Depending on the climate, beverages were offered to you. Even at times Paan (chewing betel leaf combined with the areca nut) and Hookah (a water pipe for smoking) was offered to clients,” said Jafar Meer Abdullah, a Nawab.

During those times, banks used to charge an interest rate of 8-12% on

Bank loans.

Under British rule in India, the Nawabs ruled various princely states of Awadh, Bhopal, Junagadh, Pataudi among others. (ANI)

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