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 CHAPTER VIII

SAVINGS BANK

THE first Government Savings Banks were opened at the three Presidency towns of Calcutta, Madras and Bombay in 1833, 1834 and 1835, respectively. These Banks were announced as intended for the investment of the savings of " all classes British and Native," the return of the deposits with interest being guaranteed by Government. Between 1863 and 1865 the management of the Savings Banks was transferred to the Presidency Banks, and each Presidency framed its own rules. The first deposits were limited to Rs.500, and upon the balance reaching this sum it was invested in a Government Loan. The limit was gradually increased to Rs.3000 with interest at 4 per cent, but, as it was found that many people deposited the maximum amount at once, a rule was brought in prohibiting the deposit of more than Rs.500 a year in any one account.

In 1870 District Savings Banks were instituted in all parts of India except Calcutta and the Presidencies of Madras and Bombay. The limits for deposits were fixed at Rs.500 a year with a total of Rs.3000 and interest at 3§ per cent was fixed. In December, 1879, revised rules were drawn up for District and other Government Savings Banks, the most important change being that the limit of a deposit account was raised to Rs.5000 and g 81