Nationalized banks in India

nationalised banks in India

Impact of nationalized banks in India on the economy

Nationalised banks in India are those banks which were initially private commercial banks but later acquired by the Indian government. 14 private banks nationalized during the Indira Gandhi regime by passing an ordinance on 19th July 1969. July 19 also celebrated as Bank nationalization day in the country. In the year 1980, 6 more banks nationalized by the Indian Government. It would be interesting to note that SBI is a public sector bank but not a nationalized bank. SBI was a state-owned bank since its inception. Currently, there are 21 nationalized banks in India till date & approved by Reserve Bank of India.list of nationalized banks in india

Why was Bank nationalization so necessary?

  1. Private commercial banks nationalized so that vital sectors of the economy such as agriculture, small-scale industries and the weaker sections of the society get the much-needed capital resources for their economic growth and development.
  1. At that time private commercial banks were running a monopoly and granting loans only to a few large business houses which included their friends and well-wishers. Nationalised banks broke this monopoly.
  1. The Nationalised banks in India took the banking activities to remote parts of the country through its expansion programmes.
  1. Nationalised banks in India bridged the gap between prosperous and needy regions in the country by giving special importance to the rural areas.
  1. Nationalised banks in India supplied the much-needed credit facilities to farmers and local entrepreneurs to revive the rural economy. These steps followed under the government policy of priority sector lending.
  1. 70% of the Indian population living in rural areas suffered under the clutches of usurious money lenders. Nationalised banks in India connected the rural population to the mainstream Banking structure in the country.

List of Nationalised Banks in India 

Sl. No. List Nationalised Banks
1  Allahabad Bank
2  Andhra Bank
3  Bank of Baroda
4  Bank of India
5  Bank of Maharashtra
6  Canara Bank
7  Central Bank of India
8  Corporation Bank
9  Dena Bank
10  Indian Bank
11  Indian Overseas Bank
12  IDBI Bank
13  Oriental Bank of Commerce
14  Punjab and Sind Bank
15  Punjab National Bank
16  State Bank of India
17  Syndicate Bank
18  UCO Bank
19  Union Bank of India
20  United Bank of India
21  Vijaya Bank

 

Reference Link:  https://en.wikipedia.org/wiki/Public_sector_banks_in_India