After independence the Government of India (GOI) adopted planned economic development for the country. Accordingly, five year plans came into existence since 1951. However, commercial banks were in the private sector those days. In 1950-51 there were 430 commercial banks.
The Government of India had some social objectives of planning. These commercial banks failed helping the government in attaining these objectives. Thus, the government decided to nationalize 14 major commercial banks on 19th July, 1969. All commercial banks with a deposit base over Rs.50 crores were nationalized. It was considered that banks were controlled by business houses and thus failed in catering to the credit needs of poor sections such as cottage industry, village industry, farmers, craft men, etc. The second dose of nationalisation came in April 1980 when banks were nationalized.
Though the nationalisation of commercial banks was undertaken with tall objectives, in many senses it failed in attaining them. In fact it converted many of the banking institutions in the loss making entities. The reasons were obvious lethargic working, lack of accountability, lack of profit motive, political interference, etc. Under this backdrop it is necessary to have a critical look to the whole process of nationalisation in the period after bank nationalisation.
Tricks to remember the Nationalization DATE of BANKS.
Trick : a PUNJABI boy of name VIJAYA is studying COMMERCE in a CORPORATE college of ANDHARA PARDESH
PUNJABI – Punjab and Sindh Bank (Don’t be confuse with Punjab National Bank)
VIJAYA – Vijaya Bank
COMMERCE – Oriental Bank of Commerce
CORPORATE – Corporation Bank
ANDHARA PARDESH – Andhra Bank Dena Bank – Mumbai
These 5 banks nationalization date is : April 15, 1980. Except these 5 banks (also except SBI group and IDBI) all other 14 banks were nationalized on July 19, 1969.
Thanks to RAJ KUMAR (Odisha) to share this TRICK with us.