InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
What are the significant differences between the Nakarattar bankingsystem and the modern Western banking system, according to the author? |
|
Answer»
Under colonial rule, the Nattukottai Chettiar or Nakarattar caste organized themselves into a complex, segmentary network of interdependent family merchant-banking firms. Each firm traded INDIVIDUALLY in commodities TRADING, money lending, domestic and overseas banking operations, or industrial investment. But beyond this - making possible every other COMMERCIAL venture in which it engaged - each family firm operated as a commercial bank: taking money on deposit and drafting hundis and other financial instruments for use in the transfer of loanable capital to branch offices and to other banks. As a result, every Nakarattar firm was tied together with all of the others to form a unified banking system, playing a major role in the credit markets of SOUTH Asia and the Indian OCEAN rim.
|
|