1.1.1 Origin of Bank in
Banking concept existed even in the ancient period when the goldsmiths and the rich people used to issue the receipts to the common people against the promise of safe keeping their valuable items on the presentation of receipts. The depositors would get back their gold and valuables after paying a small amount for safe-keeping and saving, the gold smith and the money lenders became banker of those days who started performing two functions of modern banking-accepting deposits and advancing loans. However, stage wise development of banking can be narrated as follows:
§ The first phase of banking development
Ø In the 11th century, during Malla reigns, there was an evidence professional money lender and buyer.
Ø Tejrath Adda was established in 1877 A.D. which provided loan at very low rate of 5%.
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