Nationalization of Banks in India in 1980:

In 1980, the government of India nationalized six more commercial banks. This brought the total number of nationalized banks to 14. The six banks that were nationalized are:

1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental Bank of Commerce
5. Punjab and Sind Bank
6. Vijaya Bank

Reasons for Nationalization:

1. To control the dominant position of the private players in the banking sector.

2. To ensure that credit flow is directed towards priority sectors such as agriculture, small-scale industries, and exports.

3. To promote the spread of banking facilities in rural and semi-urban areas.

4. To prevent the concentration of economic power in the hands of a few individuals or families.

Impact of Nationalization:

1. It led to an increase in the number of branches of nationalized banks, especially in rural areas.

2. It led to an increase in the credit flow towards priority sectors.

3. It led to the spread of banking facilities in rural and semi-urban areas.

4. It led to an increase in the role of the government in the banking sector.

Conclusion:

The nationalization of banks in 1980 was a significant step taken by the government of India to bring about social and economic change. It helped in the spread of banking facilities in rural and semi-urban areas and ensured that credit flow was directed towards priority sectors. It also prevented the concentration of economic power in the hands of a few individuals or families.