Nationalization of bank

Nationalization of Banking sector

1. Bharatiya Mahavidyalaya , Amravati. (Art’s, Commerce & Science) Presented By :- SHUBHAM RAUT. Subject :- Banking And Insurance. ( Nationalization of bank )

2. NATIONALISATION OF BANK

3. Nationalisation Of Bank After independence the Government of India (GOI) adopted planned economic development for the country(India). Accordingly, five year plans came into existence since 1951. This economic planning basically aimed at social ownership of the means of production. However commercial banked were in private sector those days. In 1950-1951 there were 430 commercial banks in India. The government of India had social objective of planning. These commercial banks failed helping the government in attending these objective. Thus the government decided to nationalize 14 major commercial banks on 19 th July, 1969.

4. The nationalisation of bank in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalized 14 banks then. These banks were mostly owned by businessman and even managed by them. Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalized. It took place in July 1995 under the SBI Act of 1955. Nationalisation of seven State Banks of India ( formed subsidiary) took Place on 19 th July,1960.

5. List of 14 Nationalized Banks in India Central Bank Of India Bank of Maharashtra Dena Bank Punjab National Bank Canara Bank Indian Bank Indian Overseas Bank Bank Of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India Syndicate Bank (this banks offer job openings time to time)

6. In 1980 the Government of India again nationalized six (6) commercial banks, razing the number of nationalized commercial bank in the public sector to 20. Commercial banks nationalized on 1980 were.. Andhra Bank Corporation Bank New Bank Of India Oriental Bank Of Commerce Vijaya Bank Sindh Bank

7. Object behind nationalisation of bank of india The nationalization of commerce bank took place in an aim to achieve following major objective. Social Welfare :- It was the need of the hour direct the funds for the needy and required sectors of the Indian economy. Sector such as agriculture, small and village industries were in need of funds for their expansion and further economic development. Controlling Private Monopolies :- Prior to nationalization many banks were controlled by private business houses and corporate families. It was necessary to check these monopolies in order to ensure a smooth supply to credit to socially desirable sections. Expansion of Banking :- In a large country like India the numbers of banks existing those days were certainly inadequate.

8. Reducing Regional Imbalance :- In a country like India where we have urban-rural divide; it was necessary for banks to go in the rural areas where the banking facilities were not available. In order to reduce this regional imbalance nationalisation was justified. Priority Sector Lending :- In India, the agriculture sector and its allied activities were the largest contributor to the national income. Thus these were labeled as the priority sectors. But unfortunately they were deprived of their due share in the credit. Nationalisation was urgent needed for catering funds to them. Developing Banking Habits :- In India more than 70% population used to stay in rural areas. It was necessary to develop the banking habit among such a large population.

9. THANK YOU