History is a great teacher, and sometimes, it also
provides many answers when we nod our heads to a statement that says,
“history repeats”! But for history to be repeated, at first it needs to be
Going back in time, let us try to remember
historic events and references in Banking, Insurance and a Profession in India.
Year 1770 is when we had the first Bank in
our country - Bank of Hindustan. Year 1921 saw the emergence of Imperial Bank
of India which went on to become State Bank of India in 1955. These events are
between 65-250 years old!
Manusmrithi, Dharmasastra and Arthasastra
have references to Insurance! After we saw Oriental Life Insurance Company
being set up in then Calcutta (now Kolkata) in 1818 we have been witness to our
insurance laws getting refined between 1914-1938 culminating with the Insurance
Act, 1938. Life Insurance Corporation was established in 1956. Again, these
events and references are between 65-203 years old!
Our Parliament enacted The Chartered
Accountants Act in 1949. Since then, we Indians have at least understood that
we could approach a professional for our taxation related matters. We are used
to this since over 70 years!
History is repeating with bubbles bursting
and scams breaking out - see the plight of "robinhood" investors in
India and those many who brag about their cryptocurrency but end up buying some
sham coins on some unregulated portals loosing all their money! Well, that is a
hard way to learn, but nevertheless, a lesson learnt! The more I speak to
people who have been subject to some such setback in life (sigh), the more I
get convinced that financial planning will get deep rooted in our society. It
is just a matter of time!
Much like how Kautilya emphasized on
maintaining the standards of public governance in the Mauryan Empire, at FPSB
we are emphasizing the standards for financial planning. The three important
internal issues for the ruler (read as custodian of the wellbeing of the
people) to attend to were Raksha—or protection of life and liberty within the
state; Palana or law and justice; and Yogakshema or welfare of the people. By
upholding our standards in client engagement, we are ensuring Yogakshema. We
are dispensing Palana as we help our clients keep a safe
distance from scams saving them from injustice as consumers! We are making sure of Raksha for the client and their future generations when we do in-depth risk and estate planning.
Evolution has happened in Banking,
Insurance and in many other professions and it continues to happen in front of our very
own eyes. Today, electronic media has a huge reach. We have over 62 crore
internet users in India and is expected to go to 90 crores in 2025. I
believe that the awareness - of doing the right thing with your money, and
having a financial plan for your life - will grow exponentially in the coming
decade. Access to information is a big leveler.
Most of us do not realize we are in the
process of making history until much later!
Onward and forward!!!
FPSB Ltd. India Liaison Office