Banks were nationalised in 1969.Give reasons
Answers
Following are the issues for which Banks were nationalized:
1) Efficiency issue: Government will be able to appoint experienced person for better efficiency of the banks,
2) Monetisation issue: Commercial banks collects and deposits money from public and are controller of money which cannot be continued.
Money should be controlled by Government.
3) Integration issue: Central banks are not targeting money for profit but private banks are doing profit.
4) Socialisation issue: When country is taking socialistic move then bank should also follow the same pattern.
5) Help to agriculture: Agriculture cannot prosper without bank help.
Since private banks are not helping villages, banks should be nationalized.
6) Balanced Regional development: Some rural areas are extremely backward .So they need bank help.
7) Greater control by the Reserve Bank: Strict control over credit disbursement is necessary.
So,all private banks should be controlled by Reserve bank.
8) Small stake of shareholders:
9) Greater Stability of banking structure:
10) March Forward towards Socialism:
11) Better service conditions to staff:
12)New schemes: New schemes are to be formulated for Nationalized banks
Explanation:
the the profit of bank come would into Government treasury once the nationality it was essential to covered the defix if they are occurred while implementing different schemes more never India wanted to develop small scale and farmers suitable industries which requires fund Lal Bahadur Shastri under 2 lakh experiment of the green revolution in order to overcome full sorted and drought the Congress form socialist action a group within the Congress party demand in nationalisation of banks which was supported by communal is fortin commercial banks and Nationalised in 1969