Thursday, June 5, 2008


History of Salem Dist Bank
MR.B .Rajagopalachary first registrar of madras central bank ltd 1905
was brain behind this salem dist urban bank ltd
The salem bank started on 6jan 1904 with 16 members,with share capital
of 1,00,000 made up of 200 shares of rs 5oo each .
In 1908 loans out standing is 200675.00/1909 is348640.00
1920 is891441.00
NEW building of SALEM URBAN BANK LTD WAS inaugarated by Mysore PRINCE yuvaraj on 11-april 1932 site cost 15000 and construction 45000

The Salem bank has a previlage of the visit from Messrs. Stoker of the Imperial Bank of India who studied the day to day process of bank transactions and wrote praising article on the Salem
Bank whose report was also submitted to the House of Lords in london UK.

The 1 Rupee bank note was issued in unique way and for the purpose of helping poor people in the district of Salem. . The Salem District Bank also started reforms for the provision of
Liqour prohibition and encouraged people to save their money in the form of Salem Bank note .In the saving boxes supplied by the Bank and this idea of SalemBank note and a prohibition along with the anti-leprosy drive was so successful ,The British crown started suppresing the Salem Bank and lifted the prohibition act earlier supported by the local collectors. This suppression of Salem Bank developments scheme were thought to be supporting the independence movement of India.
For a short time the Salem Bank got antibritish, pro Indian and got good deposits but suddenly under the pressure of British Government they have to stop all developments scheme including the issue of 1 Rupee of Salem.Here we lost track of the records and the Bank notes were taken back by the bank and were not issued again.
Because of this alignment with the freedom movement the Bank has to suffer in many ways. The Salem Bank then stopped the anti liqour drive, and dismissed the doctor who was treating the leprosy patients at the expenses pf Salem Bank and even withdrew the Kiddy Bank Schemes and the 1 Rupee Bank notes scheme.
It is thought that the Bank notes were destroyed by the Bank under the pressure of British Crown.This is the only instance in India where the Bank has been issued by an small bank.

Bank notes were withdrawn unilaterally by government,which wereissued for the benifit of poor peoples savings , People started liking the 1 Rupee note which was put into good cause with Kiddy Bank savings ,the poor people moneywas channelelled into the benifit of poor,paved way in stopped consuming of liquour.At the earliest stage the distict collector of Salem has supported the developments schemes of Banks, and many delegates from a far of places visited to study the Salem Bank.There was a delegation from Eireland from Bombay

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