Question

Answer in 50 to 60 words Why were 14 Commercial banks Nationalised?​

Answer 1

Answer:

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Explanation:

Banks were asked to push funds towards sectors that the government wanted to target for growth. Indira Gandhi told the Lok Sabha on 29 July 1969 that the “purpose of nationalization is to promote rapid growth in agriculture, small industries and export, to encourage new entrepreneurs and to develop all backward areas". Indian government adopted a planned economic development for the betterment of the country. These 14 banks contained up to 85 percent of bank deposits in the country and most of them were privately owned. During 1980, 6 more commercial banks followed the suit and came under nationalized cover.

Answer 2

Answer:

The year 2019 marks 50 years of India’s Bank Nationalisation. On July 19, 1969, Indira Gandhi who was both Prime Minister and Finance Minister at that time decided to nationalise 14 largest private banks of the country.

With Imperial Bank already nationalised and renamed as State Bank of India in 1955, this decision pushed 80 percent of banking assets under the control of the state. The third volume of Reserve Bank of India’s history termed nationalisation of banks as the “single most important economic decision taken by any government since 1947. Not even the reforms of 1991 are comparable in their consequences—political, social and, of course, economic.”