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The nationalisation of major commercial banks took place in
  • a)
    1947
  • b)
    1956
  • c)
    1969
  • d)
    1980
Correct answer is option 'C'. Can you explain this answer?
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The nationalisation of major commercial banks took place ina)1947b)195...
After independence the Government of India (GOI) adopted planned economic development for the country (India). However, commercial banks were in the private sector those days. In 1950-51 there were 430 commercial banks. These commercial banks failed helping the government in attaining these objectives. Thus, the government decided to nationalize 14 major commercial banks on 19th July, 1969.
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The nationalisation of major commercial banks took place ina)1947b)195...
The nationalisation of major commercial banks in India took place in 1969. This was a significant step taken by the Indian government to bring about social and economic reforms in the country. Here is a detailed explanation of the answer:

1. Background:
- Prior to nationalisation, the banking sector in India was dominated by a few private banks, which catered primarily to the needs of the affluent sections of society.
- The government wanted to ensure that banking services are accessible to all sections of society, especially the rural population and small-scale industries.

2. Objectives of Nationalisation:
- The nationalisation of banks aimed to promote social welfare and economic development by ensuring the availability of banking services to all sections of society.
- It sought to mobilize savings from the public and channelize them into productive sectors of the economy.
- The government also aimed to control the concentration of economic power in the hands of a few private individuals or groups.

3. Process of Nationalisation:
- On July 19, 1969, the then Prime Minister of India, Indira Gandhi, announced the nationalisation of fourteen major commercial banks.
- The banks that were nationalised included the State Bank of India and its seven associate banks, as well as several other prominent banks such as Punjab National Bank, Canara Bank, and Bank of Baroda.
- The nationalised banks were required to transfer a majority of their shares to the government, effectively bringing them under public ownership and control.

4. Impacts and Benefits:
- The nationalisation of banks led to the expansion of banking services in rural areas and the opening of branches in previously underserved regions.
- It facilitated the provision of credit and financial services to small-scale industries and agriculture, thus promoting inclusive growth.
- The government was able to use the nationalised banks as instruments of its economic policies, such as priority sector lending and directed credit.
- Nationalisation also helped in stabilizing the banking sector and protecting depositors' interests.

5. Criticisms:
- The nationalisation of banks was not without its share of criticisms. Some argued that it led to bureaucratic interference and inefficiency in the functioning of banks.
- Others claimed that it discouraged private investment in the banking sector and reduced competition, which could have potentially led to better services for customers.

In conclusion, the nationalisation of major commercial banks in India in 1969 was a significant step towards achieving social and economic reforms. It aimed to make banking services accessible to all sections of society, promote economic development, and prevent the concentration of economic power. Despite some criticisms, nationalisation had a positive impact on expanding banking services and supporting inclusive growth in the country.
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The nationalisation of major commercial banks took place ina)1947b)1956c)1969d)1980Correct answer is option 'C'. Can you explain this answer?
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