Commerce education in India began in 1886 with the establishment of a commercial school in Chennai (erstwhile Madras). Shri Ram College of Commerce embarked on its voyage early in the year 1920 when on the day of Basant Panchmi, seven leading businessmen in Delhi established the Commercial Education Trust. The Trust set up its first school in the same year under the name 'The Commercial School' at Charkhewalan in the walled city of pre-independence Delhi. The school introduced a Post-Matriculation Diploma Programme in Commerce under the supervision of Mr. R.K. Kumar, who later became the first Principal of the Commercial College. The inauguration of the Commercial College paved the entry of commerce education in the University system of Delhi.

The first batch of students was enrolled on the first floor of a 'Hall' opposite the St. James' Church at Kashmere Gate. The classes began with twelve students and four faculty members from a hired bungalow at 8, Darya Ganj, New Delhi. In 1926, the Commercial College got affiliated to the University of Delhi. Six years later, it was upgraded to the status of a Degree College and started awarding its graduates the B.A. (Pass) (Commerce Group) Degree of the University. The B.A. (Honours) (Commerce Group) Degree was introduced in 1943. The same year witnessed the introduction of M.A. (Economics) course, followed by the introduction of Master's degree in Commerce in 1948. In 1949, when B.Com (Honours) was instituted in the University of Delhi, the College also started offering the same. In 1951, on the occasion of its Silver Jubilee, the Commercial College decided to specialize in the field of commerce and economics and hence rechristened itself as Shri Ram College of Commerce (SRCC) in recognition of the contribution made by its founder Sir Shri Ram.  Finally, the B.A. (Honours) Economics course was introduced later in 1958.