What was the trading practice of the Nakarattars community of Tamil Nadu in pre-colonial India?

They practiced a caste-based banking system.

The correct answer is Option (3) → They practiced a caste-based banking system.

The Nakarattars, also known as Nattukottai Chettiars, were a prominent mercantile and banking community in pre-colonial India. They were renowned for their sophisticated indigenous banking practices. Their system included the use of hundis (bills of exchange) and an extensive credit network that operated across India and extended into Southeast Asia. This caste-based system was central to their economic activities and facilitated long-distance trade and commerce.