nationalization of banks-1.pptx

Some slides about nationalization if banks in India

1. Nationalization of Major Commercial Bank: First spell of Nationalization of bank, 19 July 1969. Before nationalization of banks , the majority of the banks was operating in Urban area and mostly controlled by large industrialists which meant for making more and more profits not for socio –economic development of the weaker section of the society. As we know that around 68 per cent of the country’s population is residing in rural area which are directly and indirectly depends on agriculture. to protect agriculture and other allied sectors , the government took control over the banking system during 19 th J uly 1969 when 14 major commercial banks were nationalized and these banks had to deposit a minimum of Rs. 50 crore each with Reserve bank of India

2. The list of banks which were nationalized are as- Allahabad Bank of Baroda Bank of India Bank of Maharastra Canara bank Central bank of India Dena Bank Indian Bank Indian overseas bank Union bank of I ndia Syndicate bank Union bank of India United Bank of India United Commercial Bank

3. Second spell of Nationalization, 14 A pril 1980: Six major commercial banks are nationalized during 15 april 1980 with the deposit of minimum 200 crore each with Reserve Bank of India, these banks are- Andra Bank Corporation Bank New Bank of India Oriental bank of India Punjab and Sindh bank Vijaya bank

4. Lead bank Scheme , 1969: Lead bank were recommended by Nariman committee lead bank were established in 1969 Lead bank is also known as district adoption scheme because under this scheme specific districts are allotted to each bank, which needs to take the lead role in indentifying the potential areas for banking activities in expanding credit facilities Lead bank is the leading commercial bank of the district which was mostly found at district level. The main objectives of lead banks are as identifying the potential areas for banking activities in expanding credit facilities , surveying of lead district and preparation of district credit plan etc.

5. Regional Rural Banks ( RRB): Regional Rural Banks ( RRB) Were recommended by M. Narashimham committee Regional Rural Banks were established on 2 October 1975 Regional Rural Banks act passed in 1976 Initially 5 regional rural banks were established as are follows- Gaur Gramin Bank, Malda ( West Bengal), Sponsor United Bank of India Gorakhpur Gramin Bank, Gorakhpur ( U.P.), Sponsor bank State Bank of India. Haryana Kshetriya Gramin Bank, Bhivani ( Haryana), Sponsor bank Punjab National Banks. Jaipur Nagaur Anchalik Gramin Bank, Jaipur ( Rajasthan), Sponsor bank United Commercial Bank Prathma Bank, Muradabad , U.P. , Sponsor bank Syndicate Bank

6. Objective of RRB: To provide credit which encourage various developmental activities for agricultural and village industries, and local artisans etc. To reduce dependence of weaker section on money lenders To help the poor financially and to make backward and tribal areas economically better off, finally we can say that RRB helps to develop the rural economy.