The list of failing banks in the USA is growing, and then one wonders how Bhartiyas managed economic success continuously for more than 2000 years and how the whole world was attracted to Bhartiya wealth. Let’s try to explore. The Mauryan Prime Minister, Chanakya, wrote the book ‘Arthashastra’. Along with other subjects, he elaborately explained guilds formed by artisans and traders. These guilds were called ‘Sreni’ and they also worked as efficient banks. These ‘Srenis’ remained strong in India till the large-scale invasions began; due to various factors, these srenis lost their luster.
Another institution that remained very strong as a banking institution was Indian temples. Temples were not just the abodes of gods and goddesses; they played a vital role in society, including banking. If one is wondering how temples amassed so much wealth, then one must understand that, be it a king or pauper, everybody donates according to that person’s capacity. Banking is all about trust, and everybody in the society of that time trusted the reigning deity. Both lending and payment were done in the name of God. So, there is no scope for NPAs (non-performing assets).
During natural calamities or post-war situations, if any, temples feed and support society until it can sustain itself on its own. If anybody is wondering if those were ancient times and, at present, it isn’t possible, then there is a surprise for you. Barang Naag temple in Sangla in Kinnaur district of Himachal Pradesh is a living example of a temple bank(https://www.deccanherald.com/india/temple-cum-bank-never-677458.html).
Then how did these temple banks disappear? Constant invasions and plundering of temples’ wealth had become common among Islamic invaders and later European invaders. The next question arises: how come the southern parts of Bharat have large and most probably richest temples? Then one needs to understand that the northern parts of Bharat were invaded frequently for more than 900 years. However, the southern part of Bharat had fewer invasions and had time to rebuild temples. In the book ‘Madhuravijayam, Gangadevi writes that the Vijayanagara Empire rescued and rebuilt temples. That’s why we still have some of the richest temples, but they’re under government control. Now, we Bhartiyas have to decide which model of banking is suitable for us.