During the period of modern history, however, the roots of commercial banking in India can be traced back to the early eighteenth century when the Bank of Calcutta was established in June 1806 – which was renamed as Bank of Bengal in January 1809 – mainly to fund General Wellesley’s wars.
High inflation affects all citizens, but especially the most vulnerable, and can trigger a vicious circle of price increases. As a result, consumption and investment planning becomes difficult for households and businesses alike. Also, trust in the currency weakens, as money gradually loses its value.