causes of after nationalisation of bank
Answers
Increase in Public deposits: Purpose of nationalization is to promote rapid growth in agriculture, small industries and export, to encourage new entrepreneurs and to develop all backward areas. Green Revolution: This is one of the main reasons for India's growth process, particularly in the Green revolution.
The main cause of nationalization of banks have been stated as to include the enlargement of resources for economic growth, the development of Agriculture and Industry in backward regions as well as making bank credit available to priority areas which had generally been neglected. To fulfill such objectives govt, felt that the lending policy should be governed by the government rather than by few monopolist shareholders who in the past divert bank resources to their self-desired channels ignoring the needs of the country's economic planning. In this way the use of bank money for purposes of speculative activities and unproductive works shall be eliminated. The bank resources shall be utilized for encouraging new entrepreneurs. It is also proposed to secure professional standards in bank management and provide adequate training facilities for banking personnel by assuring reasonable terms of employment for the banking industry's staff.