The finance of Indian trade was largely managed by the Indian exchange banks, which were based in Britain, but operated in India, and, in some cases, South East Asia and Australia. For much of the period there were five to seven such banks, the most important of which were the Oriental Banking Corp. (established in 1851, failed in 1892), the Hong Kong & Shanghai Banking Corp. (established 1865), and the Chartered Mercantile Bank of India, London & China (1858). As reflected by their name, their main role was exchange dealing, and for the whole of the period they dominated this sector. The Indian joint stock banks lacked the necessary funds to enter the business, the Indian presidency banks possessed no London branches and were legally precluded from dealing in exchange, which was regarded as excessively risky, and any attempt to open up the market was fiercely resisted. The banks also performed a variety of other financial activities – taking in current account and fixed deposits, providing overdrafts and short- and long-term loans against local bills of exchange and government securities, and underwriting Straits and Hong Kong loans.

The purpose of the banks' exchange dealings was to allow purchasers of Indian produce and UK goods to send payments respectively to India and the UK, and individuals and institutions to move funds between the two countries.