Which of the following is a caste based banking system during colonial India?
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: Nakarattar system.
Option 1: Jajmani System. – Incorrect. The Jajmani system was a traditional non-market system of exchange of goods and services based on hereditary caste relationships. It was not a banking system.
Option 2: Hundi System. – Incorrect. A hundi was an instrument of exchange and credit used by merchants. It was not a caste-based banking system.
Option 3: Nakarattar system. – Correct. The Nakarattars (also known as the Nattukottai Chettiars) developed a caste-based banking and money-lending network during the colonial period. They provided credit, financed trade, and established banking operations across India and Southeast Asia.
Option 4: Vaisya System. – Incorrect. Vaisya refers to a varna associated with trade and commerce, not to a specific caste-based banking system.