BANKING TRADE AND COMMERCE

JOINT STOCK BANKS

Joint Stock Banks.— Buldhana district remained backward economically till the dawn of Independence in 1947. The growth of banking was slow and limited and there were banks at a few centres only. The money-lender was the principal supplier of credit to the people who were mostly agriculturists. Their business declined considerably following the implementation of the Central Provinces and Berar Moneylenders Act, 1934 and the readiness shown by the State in providing credit to the public through its agencies.

Modern banking may be said to have begun in the district with the establishment of a branch of the Central Bank of India on 20th October 1945 at Khamgaon.

On 1st July 1955, the State Bank of India was constituted by a special Act and all the undertakings of the Imperial Bank of India were taken over by it. This policy was adopted only with a view to extending banking facilities on a large scale to the people in the rural and urban areas. The State Bank, also acts as an agent to the Reserve Bank of India and conducts Government transactions. In addition, it provides remittance facilities to scheduled banks, co-operative banks and co-operative societies. The role of the State Bank of India in respect of providing agricultural and rural credit facilities in the district at present consists of, (a) financing agriculturists by way of advances to them against pledge of gold ornaments, (b) making advances against warehouse receipts, and (c) making advances to co-operative and marketing societies by way of repledging their stocks with the Bank. At present there are eight branches of the bank in the district.

There is a branch of the State Bank of Hyderabad at Deul-gaon-Raja, established on 29th July 1963. It mainly transacts Government business, such as accepting and holding of monies belonging to the Government and making payments on its behalf and other routine business, such as, exchange, remittance, etc. The bank also works as an agent of the Government.

This bank is a wholly owned subsidiary of the State Bank of India. The rates of interest on deposits are largely standardised and depending on the period, vary from three to six per cent. The rate of interest on advances varies from six and a half per cent to nine per cent depending on security and duration. In the absence of industrial development on a large scale, the banking business has not prospered much in the district. It is mostly restricted to the agricultural sector, though the bank extends financial assistance to small scale and cottage industries at concessional rates of interest. The advances are generally for medium term, and are repayable within a period of seven years against suitable and adequate security including that of immovable property.

The following statement shows the number of banking offices in the district as on 31st March 1966:—

The table given below furnishes the names of the banks [The co-operative banks in the district are referred in the section on Co-operative movement.] and their dates of opening in Buldhana district:—

The other banks, besides, the State Bank of India and the State Bank of Hyderabad, receive deposits and advance loans on securities. They also extend other banking facilities, such as, overdraft, deposit, etc., to meet the requirements of trade, commerce and industry. The rates of interest charged by them on advances differ according to the purpose for which the advances are made. Generally loans without security are not favoured, and if made, are for small sums and for short durations only. The interest rates in such cases range from 8 per cent to 9 per cent per annum. Advances to industries are given priority over those to merchants dealing in seasonal crops like cotton, foodgrains, etc.

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