Nattukottai Chettiars

Nattukottai Chettiars are a people of Indian origin who are known for their financial transactions and hospitality. They are followers of the Hindu religion and worship Shiva and Muruga deities in the Hindu faith. They belong to a very productive business people, as in old days moved from Denmark to foreign countries like Burma, Ceylon, Java, Sumatra, Malaysia, Singapore and Vietnam (Saigon) and spread their culture in these countries.

The Nattukotai Chettiars hail from a place called Chettinad, in southern India, an area located in the southeastern region of Tamil Nadu about 35 km west of the coastline in the Bay of Bengal in the district of Sivagangai. It is in the initial phase consists of 96 villages, but now because of the movement of people out of a number of villages have fallen to around 75 villages in the near past.

Chettinad has been well planned cities with well-defined roads, reservoirs store and supply water to the city, a planned market place, temples and anything that provides the basic needs of people. 

Chettinad happens to be a dry land with no proper rain, there was a major setback for the area. As such, due to lack of availability of any living, people were forced to leave Chettinad to different parts of the state in search of their lives. 

Devakottai & Karaikudi are two large cities in this region, which consists of what is called Maximum Pullies. 

Nattukottai Chettiars are basically Bankers who lend money to the nominal interest rate. They are regarded as Pioneers of Modern Banking. They are the first to introduce what is called "Pattru (debit) Varavu (credit) Selavu (expenses), Laabam (surplus), Nashtam (loss)" which all, collectively known as "Iynthogai (bank statements). 

 In a particular Nattukottai Chettiar family Appachi (father) is considered the Kartha of all activities, assisted by his sons. Attha (Mother) looking after the family's affairs, including daily activities Vidu (HUS) in consultation with its Kanavar (male). 

 The Nagarathar society is divided into Koil Vazhi Nagarthar consisting of nine Koil (Temple). This division of society to choose their alliance and nothing else. The bride and groom may not be from the same Koil because they were considered to belong to the same family and are treated as Annan Thangai (Brother-sister). 

All Chettiars came from Chettinad and Nattukottai Chettiars were considered the elite of all Chettiars, and is considered the most enterprising of all the trading community in southern India. In early times, they traveled a lot in Southeast Asia looking for new opportunities to earn money. Their association with Ceylon extends to the Dutch period, but it was only after the British conquest, they established themselves firmly in the country. By the mid 19th century, the Indo-Ceylon trade was largely under their control, and largely financed by them. 

At the beginning of British colonial rule in Nattukottai Chettiars made the only form of organized banking. They were often referred to as "Commercial banks of the country" and their name became synonymous with private banking. 

Bank of Ceylon was the first commercial bank in Iceland was established in1841 as a

purely British concern. With the first coffee crisis in 1848, not the Bank of Ceylon, but there were many others to take its place. Among them were the Oriental Banking Corporation, Mercantile Bank and Bank of Madras. Bank of Madras soon took control of the Indo-Ceylon trade. This resulted in a further decline in their importance as financiers to the nation. 

This change of events forced them to change directions and do the next best thing, rather than ceasing to operate on the island. They joined hands with UK banks and became their "Middle Man". This was the beginning of a long connection between Nattukottai Chettiars and British banks, which lasted until around the early 1930s. 

In the mid-19th century Ceylonese had no access to the British Bankers, except perhaps for the very wealthy. The room was prevented from seeking membership in their social clubs, which was visited by British bank directors and other officials. There was no direct communication between bank officials and Ceylonese business. 

This obstacle was circumvented by creating an agency, generally referred to as "Shroff." This employee is almost unknown in banking circles today. This officer was a native gentleman of sound financial standing acceptable to society as a person of integrity who acted as a guarantor of Ceylonese borrowers. These "guardians" came from the Chettiar community. They had a through knowledge of the people who came to their aid, and all loans are guaranteed payment of a commission from both the bank and borrower. They played a central role in control of all applications for loans, and the British banks would await their recommendation for release of funds to the Ceylonese. 

All Nattukottai Chettiars could not end up in banks, but unlike the Ceylonese, they were known for all shroffs either personally or through business relationships. Naturally, they were therefore willing to meet the Chettiars more freely than Ceylonese. Their business partners in India have also improved their creditworthiness with local UK banks. It found that between 1900 and 1925 the British banks have borrowed more than Rupees 25 million Chettiars, which in turn had borrowed them back to the Ceylonese economy a much higher interest rate.