Question

discuss tha expansion and qualitative changes in bank advances and deposit after bank nationalization?
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Answer 1

Impacts

Due to the nationalization of banks, the efficiency of the banking system in India improved. This also boosted the confidence of the public in banks.

The sectors that were lagging behind like small-scale industries and agriculture got a boost. This led to an increase in funds and thus increase in the economic growth of India.

The nationalization of banks also increased the penetration of banks. This was mainly seen in the rural areas of India.