BANKING TRADE AND COMMERCE

JOINT STOCK BANKS.

At the time of publication of the Chanda District Gazetteer of 1909 there was not a single banking company in the district. The financial activities were mainly monopolised by the money-lenders or their firms. At certain places co-operative societies were also formed but their scope was too limited either to relieve the strain on debtors, particularly the agriculturists, or to make finance available to others. The main reason why the establishment of a banking company in the district was delayed was the backward economy of the district inhabited by the aborigins of the forest areas. The commercial banks were doubtful of any returns for their investment and dared not establish a branch in the district. It was only after Independence that the Allahabad Bank first opened its branch at Chandrapur in 1953. Later, other banks including the State Bank of India also established their branches at various places in the district. By 1961 there were seven banks functioning in the district.[ In 1970 there were 15 branches of commercial banks and 25 of the District Central Co-operative Bank. The deposits and bank credit of the commercial banks stood at Rs. 205 lakhs and Rs. 277 lakhs, respectively, on 1st January 1968.] Their number, location and the date of their opening are given below:-

Except the State Bank of India all other banks are engaged in commercial banking only. The main function of these banks is to accept deposits from the people and to lend them money at stipulated rates of interest. They thus assist the mobilisation of savings and at the same time encourage habits of banking in the district.

State Bank of India.-The State Bank has the largest number of branches, viz., three, in the district. It conducts all banking and Government business. Besides banking facilities, it provides free remittance facility to local scheduled banks and co-operative banks. It also offers cheque book facilities on savings bank accounts in order to encourage banking habits amongst middle class and lower class people Moreover, it makes advances against golf ornaments. Government securities, pledge or hypothecation of produce, and so on. Recently, in accordance with the Government policy. the Stale Bank is taking active part in financing small-scale industries on very liberal terms and conditions. The rates of interest charged by the bank against gold ornaments are from 7 to 8¼ per cent, against Government securities. from 5½ per cent to 6½ per cent, against pledge of pro-duce and waerhousing receipts from 6½ per cent to 7½ per cent and against hypothecation 6½ per cent per annum.

Allahabad Bank, Ltd. The next important bank is the Allahabad Bank Ltd. It has only one branch in the district. i.e., at Chandrapur. The branch was established in 1953 as the pay-office of the bank but was elevated to its full-fledged stature in 1957.As it is centrally situated at the district headquarters, it has been healthy commercial services to industry, especially to the Ballarpur Paper and Straw Board Mills Ltd., of which it is the sole banker. It holds accounts of general traders, coal mines and persona! accounts, and transacts all commercial business and undertakes duties of trustees, etc. It also extends foreign exchange facilities to its customers. The securities against which it makes short-term or medium-term loans are seasonal commodities, paper and paper products, general mer-chandies fixed, deposits and so on. The rate of interest charged on fixed deposits varies from 8 per cent to 10 per cent per annum.

Bank of Baroda and Bank of Maharashtra.-The Bank of Baroda and the Bank of Maharashtra have opened their branches later in the district and as such do smaller business. The advances of all the above banks in the district are given in the following table:--

TABLE No. 17

ADAVANCE BANKS AS ON 24-12-1964

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