"Banks are to the economy what the heart is to the human body".

Since its inception, the Indian banking sector has been essential to society. It serves the real economy, companies, social institutions, citizens and consumers. Indian Banks incubated a resilient, sustainable and inclusive economy, having enlarged their services to distribute welfare funds to the last mile Indian. They supported generating clean energy, growing food, modernising agriculture, social inclusion, and sustainability. They silently cycled necessary capital through the national economy. Indian banks stand out as architects of India's economy, which ranks fifth globally. The present stature of Indian Banks derives its strength from the sincere and dedicated performance of Swadeshi Banks before independence in 1947.

At the time of Independence, India had a relatively small banking system with only 645 banks, of which only 89 were scheduled banks. But only a few survived. The oldest bank in India is The Madras Bank (1683), followed by the Bank of Bombay, founded in 1720, followed by the Bank of Hindustan, founded in 1770. The Bank of Hindostan (1770-1832), set up by the agency house of Alexander and Company in 1770 and located in the then-Indian capital, Calcutta, was the first bank to open its gates to commoners. However, the bank failed to sustain its business model and ceased operations in 1832. It no longer exists. 

Following the path of the Bank of Hindustan, five banks were established in India. They were: 1. The General Bank of India (1786-1791), 2. Oudh Commercial Bank (1881-1958), 3. Bank of Bengal (1809), 4. Bank of Bombay (1840) 5. Bank of Madras (1843)   

Further, during the British rule in India, The East India Company established three banks: Bank of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks. These three banks were later merged into one single bank in 1921, called the "Imperial Bank of India." The Imperial Bank of India was later nationalised in 1955 and named The State Bank of India, the largest Public sector Bank. 

The Reserve Bank is India's central bank. It began operations in 1935 to regulate currency, secure monetary stability, maintain currency reserves, and oversee India's credit and currency system.

Other banks, such as Allahabad Bank, were established in the 19th century (Established in 1865), Punjab National Bank (1894), Bank of India (1906), Central Bank of India (1911), Canara Bank (1906) and Bank of Baroda (1908) have survived the test of time and exist today. Allahabad Bank has been merged into Indian Bank now. 

Indian banks played a significant role in India's struggle for independence from British colonial rule. Their contributions ranged from providing financial support to freedom fighters and nationalist movements to facilitating the dissemination of information and organising protests against British policies. Here are some key ways in which Indian banks contributed to the independence struggle:

Fundraising and Financial Support: Indian banks were crucial in raising funds for nationalist activities and movements. They provided financial assistance to leaders like Mahatma Gandhi, Jawaharlal Nehru, and others, enabling them to carry out their initiatives. These funds were used to organise protests, fund publications, and support social and cultural events that promoted the cause of independence.

Funding Nationalist Publications: Indian banks supported nationalist publications by providing loans and financial assistance to newspapers and magazines that advocated for independence. These publications were crucial in spreading awareness about the oppressive British policies and inspiring public sentiment against colonial rule.

Boycott Movement: During the Non-Cooperation Movement and Civil Disobedience Movement, Indian banks supported the call for boycotting British goods and institutions. They stopped trading with British-owned banks and promoted using indigenous products and services.

Promotion of the Swadeshi Movement: Indian banks actively promoted the Swadeshi Movement by providing loans to indigenous industries and the use of Indian-made goods. This helped in reducing dependency on British products and boosting local industries.

Facilitating Communication: Banks served as communication hubs, allowing nationalist leaders and activists to exchange ideas, strategies, and information. They helped coordinate activities and spread messages that fostered a sense of unity and determination among Indians.

Supporting Protests and Agitations: Indian banks often closed down in support of protests and strikes called by nationalist leaders. This demonstrated solidarity and showcased widespread support for the independence movement.

Contribution to National Funds: During critical periods of the independence movement, banks contributed to national funds set up to support various initiatives for the cause of independence. These funds were used to provide relief to those affected by British policies, support families of incarcerated activists, and promote educational and social welfare programs.

Indian banks played a multifaceted role in India's struggle for independence by providing financial backing, promoting indigenous industries, supporting nationalist publications, and fostering a sense of unity among the Indian population. Their contributions were instrumental in shaping the independence movement's course and ultimately led to India's liberation from British colonial rule in 1947.

Over the years, Indian banks have transformed the fragile financial landscape into a strong economy. They created valuable national assets and transformed ordinary Indians into successful entrepreneurs who mixed their intellectual capital with banks’ money to take the nation forward. Long Live Indian Banks.

Rightly said, “ People first, then money, then banks & then prosperity.” 

Mr. Hargovind Sachdev has over 39 years of banking experience having occupied senior positions in UCO Bank, United Bank of India, State Bank of Patiala, State Bank of Travancore & State Bank of India where he headed the Central European Credit Desk at Frankfurt, Germany from 2006 to 2011 covering 15 countries of Central Europe.