Structure of the organised banking sector in India. Numbers of banks are in brackets. Banking in India, in the modern sense, originated in the last decade of the 18th century. Connexion forex HDFC Bank of India, established in 1786 but failed in 1791.
It originated and started working as the Bank of Calcutta in mid-June 1806. In 1809, it was renamed as the Bank of Bengal. These are now called its associate banks. The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934.
Generally the supply, product range and reach of banking in India is fairly mature-even though reach in rural India and to the poor still remains a challenge. Indian texts to mention the concept of usury, with the word kusidin translated as “usurer”. The Jatakas, Dharmashastras and Kautilya also mention the existence of loan deeds, called rnapatra, rnapanna, or rnalekhaya. The use of loan deeds continued into the Mughal era and were called dastawez. Two types of loans deeds have been recorded.