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Banking, in its crude form, is an age-old phenomenon. It was in existence even in ancient times. In India, the references to money-lending business are found in the Manu Smriti also. But, in India, modern banking started when the English agency houses in Calcutta and Mumbai began to serve as bankers to the East India Company and the Hindustan Bank was the first banking institution of its kind to be established in 1779. Now days, a bank's business is, in a very special sense, a balancing of assets and liabilities. Loans are the children of deposits and deposits are the children loans. Comment
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