Skip to main content

Featured Post

Rise Of Cryptocurrency

What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
Post a Comment

Evolution Of Lending System

 History of Lending



The loan and borrowing practice are just as old as a money. The history of the lenders and creditors indicates that there were strict rules for credit in Sumerian civilization, Ancient Greece and Antediluvian Rome as early as 2500-2000 BC.

It is fun to imagine how people made their financial or economic transactions in early civilizations? And what for? And what for?

The House of Egibi

The House of Egibi was one of the first families to engage in trading.

Babylon was at war against ancient Egypt at the time. The (biggest king of Babylon) Nebuchadnezzar II formed his army and offered the people land. In return, the massive workforce to build a massively powerful army to invade and conquer the areas surrounding it. In ancient Babylon there was consequently a significant need to farm the land. It was here that The House of Egibi entered.

They were successful in fulfilling the role of property management during Nebuchadnezzar II. As a result, the men who owned the land went to battle in the army for Nebuchadnezzar's II sake.

Rina – The Vedic Origin of Debt in India

The Rina term "debt" was coined during the period when Rigveda was written. The other terminologies of Manusmirit often find in Manusmirit and are referred to in Bhagavad Gita, Sutra [700-100 BC] and Kautilya’s Arthashastra, such as Rinapatra, Rinalekhya, Kushdin ("usurer" or “soodhkhor”), etc.

In Hindu scripture "The sacred laws of Aryas" the very first expression of contempt for usury (lending with great interest) are articulated. For example, Vasishtha, one of the most revered Vedic Rishis of that time, made special laws in which Brahmanas (priests) and Kshatriya (warriors) were not usurers or lenders.

In Modern Times

The practice of issuing banknotes slowly emerged, soon before the 17th century in London.

The London goldsmiths have developed the banking system in its modern way through the combination of different functions of the business: maintenance of gold, silver and bullion store facilities in safe vaults, deposits and loans (as well as their own money); foreign exchange trading and discounting bills of exchange. They were also retailers of foreign and domestic coins.

They used to hold the depositor 's funds running account. They carried on a profitable enterprise in this way. These activities were on the side-lines or by-products of other trade activities before the goldsmith bankers.

Modern banking innovations were based on the paperwork of these activities. The banknote (the paper money in particular) was produced through Goldsmith receipts. Such receipts were soon negotiable like authorized currency bills.


Age of Technology

The invention of computers and faster communication canals have seen a drastic increase in the size and geographical spread of banking organizations. Computers offered better data protection, detection of fraud and decreased customer data collection time. The technology changed the way the financial industry works, making the cheques irrelevant. In our wallets we all have credit and debit cards.

The first Charg-It card was introduced by the bank of Biggins in 1946. It was the broker who matched the consumer and traders' payments in a "closed-loop" network. Each Charg-It transaction was sent to the bank of Biggins, and the Charg-It card was only allowed to be used by banks within their own local area.

In 1950, The Diner's Club Inc. launched the first version of a universal credit card. Their job was to build loyalty and experience for customers. The bill had to be fully paid at the end of each month, but the credence that the first credit card is introduced is at the Diners' Club. It has been technically a charge card.

Banks have come to payment wallets of modern times from the temples of ancient Rome. However, their fundamental working methods have remained the same – issuing interest loans and protecting the money of the depositors.
Labels:

Comments

Post a Comment

Popular

Imperialism and Rise of Modern Banking

What is Imperialism?  Imperialism is a policy of extending a country’s land by capturing land of other nation on basis of military power, economic power or by any other mean. It was a common practice during 3rd century BCE to 19th century CE. Imperialism brought many technologies, knowledge, administration, arts, culture i.e. socio-cultural revolution along with it.  After 16th century CE when trade became very prominent and west started to expand, it created many colonies around the globe. Like, Britain had colonies in India, The U.S, Parts of Africa and Australia.  Regardless of atrocities it brought to people of that nation, it brought some good practices like modern banking system. Even thought these nations used monetary systems much more for its benefits that for colonies it ruled, many of the good facilities it provided were beneficial in long run. In 1776, The U.S got independence and in 1791 the first nationwide commercial bank was introduced, it was jointly hold...
Post a Comment
Read more

Credit-Debit Explained

Introduction It means the money is taken from your bank account when debited. The opposite of a debit is a credit that adds money to your account. Your account will usually be debited when you use a debit card and use it to buy products and services, as the name suggests, to withdraw money from your bank account. A debit and a credit are included in each financial transaction. For example, when you pay using your debit card, your bank account will be charged the purchase price, but will also be credited to the account of the seller you made the purchase from. What is Debit? Your bank is notified of the purchase digitally when you use your debit card to make a purchase. This is automatically and typically happening instantaneously when you swipe or insert your card on a website to create an online shopping. The bank holds on your account the amount of the transaction, since a transaction generally requires between 24 and 72 hours to complete. You cannot use the money for anything else w...
Post a Comment
Read more