Banias and the British: the Role of Indigenous Credit in the Process of Imperial Expansion in Western India in the Second Half of the Eighteenth Century

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Abstract
The pressing preoccupation of the British administration in the early decades of the nineteenth century to clip the wings of the malicious Indian shroffs (Bankers) and their manoeuvres and secret dealings was in sharp and in a sense valid contrast to their earlierperceptions of the Indian shroffs and their Hundi empire. By 1807, Mr Rickards, senior member of the Bombay establishment, was urging the Governor-General in Council to establisha General Bank whose operations would extend throughout India, facilitate remittances andcredit transfers from one part of the country to another, and above all ‘free the mercantile body from losses and inconveniences suffered in the exchange and from the artifices of shroffs’. Their ‘undue and pernicious influence over the course of trade and exchange’ could no longer be treated with forbearance, and the urgency of remedy was stressed. It was both strange and ironical that such advice should stem from a quarter where in the crucial years of political change and transition in the second half of the eighteenth century, the cooperation and intervention of the indigenous banking fraternity and their credit support had proved vital to the success of the Imperial strategy. The experience was admittedly not unique to Bombay and the English East India Company (hence-forth E.E.I.C) and in a sense the guarantee of local credit and the support of service groups for a variety of reasons, was clearly envisagedas a basic ingredient to state building in the eighteenth century.

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