DIP: 18.02.1003/20261101 
DOI: 10.25215/2455/11011003 
Abstract
The evolution of banking in India reflects a long and complex historical journey shaped by economic, social, and political transformations. The roots of Indian banking can be traced back to the Vedic period, when barter systems governed trade and economic transactions were guided by the ethical principles of dharma. Over time, merchant guilds known as shrenis facilitated trade and informal credit practices, laying the foundation for organized financial systems. The introduction of metallic currency during the Mauryan and Gupta periods further strengthened commercial activities and formalized monetary transactions. During the Mughal era, financial innovations such as the hundi system promoted secure long-distance trade, while indigenous bankers played a crucial role in supporting agriculture and commerce. The colonial period marked a turning point with the establishment of Western-style banking institutions and the creation of the Reserve Bank of India in 1935. Post-independence reforms, including bank nationalization and priority sector lending, aimed at promoting financial inclusion and economic development. Economic liberalization in the 1990s modernized the sector through competition and technological advancements. Today, India’s banking system represents a dynamic blend of historical legacy and modern innovation, contributing significantly to national growth and financial inclusion.
The author(s) appreciates all those who participated in the study and helped to facilitate the research process. 
The author(s) declared no conflict of interest. 
ISSN 2455-670X