Methods of Indigenous Banking System
There are various methods in the indigenous banking system, but some of the common methods found are as follows:
1. Promissory Note: A promissory note is a written promise from one party to pay a specific amount to another party on a specified date or upon demand. In the indigenous banking system, the borrowers use promissory notes as a means of financial agreement in which the borrower takes their debt into account and makes a promise to repay the borrowed money.
2. Dastavez: Dastavez is a traditional name for a written document used in the Indigenous Banking System as collateral or security which serves as the terms and conditions of a financial transaction. Dastavez is used to legally secure loans, investments, or other financial agreements between individuals or groups.
3. Rohan: Rohan is a rotating savings system used in some indigenous banking systems. In this system, each member of the group takes turns in receiving the pooled amount which can be utilised either for personal or commercial needs. The rotation continues until each member has received their share of the money. The Rohan System helps community members accumulate finance, establish credit, and save money.