Kashmiri Bank Limited Faizabad: Kashmiri Pandit’s Financial Revolution in 1900 !

(By: Dr. Rajesh Bhat*)

In a remarkable revelation by Kashmir Rechords, a hidden chapter of Kashmiri Pandit excellence has come to light, showcasing their significant contributions to the banking sector in the early 20th century. Despite facing numerous displacements from their homeland, Kashmiri Pandits have consistently demonstrated their prowess across various fields, including art, culture, history, spirituality, bureaucracy, politics, and administration. This latest discovery underscores their foresight and innovation in banking, a domain where their achievements had remained largely undocumented until now.

A Visionary Banker: Pt. Iqbal Krishan Gurtu

In 1900, a Kashmiri Pandit named Iqbal Krishan Gurtu, B.A, established Kashmiri Bank Limited at Faizabad, then part of the United Provinces. Registered under the Company Act of India, the bank was a trailblazer in the financial industry, introducing concepts that were ahead of their time. Pt. Gurtu, who served as the bank’s secretary, invested a substantial capital of Rs. One lakh and maintained a reserve fund of Rs. 30,000.

Pioneering Banking Practices across Undivided India

Kashmiri Bank Limited Faizabad quickly expanded its operations, setting up sub-offices and commission branches across undivided India, including in prominent cities such as Allahabad, Bombay, Kanpur, Firozpur, Meerut, Lucknow, Delhi, and Lahore. One of the bank’s pioneering initiatives was its unique system of providing interest on term deposits, a concept very rarely introduced elsewhere in India, let alone in the Princely State of Jammu and Kashmir, where the concept of banking finds its mention only in the late 1930s.

The Kashmiri Bank Limited Faizabad offered an attractive interest rate of seven percent on term deposits for one to two years, and half of that rate for deposits kept for six months. Interest payments were meticulously calculated to be paid on the second of January and the First of July, against proper receipts. Kashmiri Bank Limited actively advertised these innovative financial services in leading newspapers of that time, demonstrating the Kashmiri Pandit’s far-reaching vision in banking.

Archival Discoveries: Advertising Financial Innovations

Advertisements from the period, now part of the archival material available with Kashmir Rechords, reveal that the bank also kept its interest rates on deposit money floating. Customers were provided with free cheque and passbooks, and the bank accepted currency notes of all denominations for deposit. Additionally, loans against immovable property were issued following attestation and recommendations by reputed and trusted individuals.

A Mysterious End and a Call for More Information

Despite these significant advancements, detailed records of Kashmiri Bank Limited’s operations beyond 1910 are scarce. The Bank’s advertisements and posters, predominantly in Urdu, cease after this period, leaving the subsequent fate of the bank shrouded in mystery. It is surprising that no one has cared to write on this subject or to take research to its logical conclusion all these years.

Kashmir Rechords, which takes pride in this “breaking news” of the past, thus appeals to its esteemed readers to share any further information. The Kashmiri Bank Limited Faizabad is a testament to the ingenuity and entrepreneurial spirit of the Kashmiri Pandits, a legacy that deserves recognition and celebration.

Celebrating a Legacy

This revelation not only highlights the historical contributions of the Kashmiri Pandits in the banking sector but also serves as an inspiration for future generations to acknowledge and build upon their rich heritage.

* Rajesh Bhat, Ph.D. in Mass Communication and Journalism brings over 35 years of experience as a writer, researcher, and academician in journalism, spanning both print and electronic media. He authored “Radio Kashmir in Times of Peace and War” and has worked with prestigious newspapers and publications including Kashmir Times, Daily Excelsior Jammu, and The Tribune, Chandigarh. Currently, he serves as a Faculty Member at the National Academy of Broadcasting and Multimedia, New Delhi.