Banasthali Vidyapith was founded on 6 October 1935 by freedom fighters and educationists Hiralal Shastri and Ratan Shastri. The institution was declared as a 'Deemed University' in 1983. While NAAC has re-accredited Banasthali Vidyapith at the highest possible ‘Grade A’ level in 2011, the Review Committee (Tandon Committee) of Ministry of HRD also appreciated the overall efforts of Vidyapith in the areas of Institutional Governance, Academic Achievements, Research, Student Progression, Infrastructure etc. and categorized Banasthali Vidyapith under ‘Category A’ list of ‘Institutions Deemed to be University’ in 2010. The university is featured in NIRF, QS I Gauge, and Times Higher Education rankings. In 2020 , NAAC has accredited this university with A++ grading.
Banasthali Vidyapith has been conceptualized to materialize the ethos of nation-building and Indian Culture. Banasthali's whole architecture stands upon the twin foundation pillars of Nationalism and Indian Culture. Since its inception, Banasthali Vidyapith has had a clear perspective about its educational efforts and has possessed a vivid picture of the form and pattern of an educational programmes to be adopted.
The architects of the Vidyapith believed that an educational program should be able to promote the development of a balanced and harmonious personality of the students. Hence, the educational program of the Vidyapith was distinct from the form of education prevalent at that time which emphasized book learning to utter neglect of all other aspects of education.