Gurudwara Sri Banda Ghaat Sahib stands in Nanded city, at the site of the hut of Madho Das, an ascetic locally renowned for his mastery of tantric powers. When Guru Gobind Singh Ji arrived in the Deccan with Emperor Bahadur Shah, Madho Das was away, and on his return he attempted to use his occult powers to humble the Guru — but none of it had any effect on Guru Sahib.

Defeated, Madho Das fell at Guru Sahib’s feet. When Guru Sahib asked who he was, he replied, "I am Banda" (a servant), and when asked whose, he answered, "Yours." Guru Sahib gave him the title Bahadur, initiated him into the Khalsa, and sent him to Punjab with five arrows to take up arms against Mughal tyranny — and he is remembered ever since as Banda Singh Bahadur.