Nationalization of Banks in India

Nationalization of Banks in India

Since Independence the Government of India has adopted planned economic development for the country . Hence, five year plans came into existence in 1951. This economic planning was basically aimed at social ownership of the means of production.
However, commercial banks were in the private hands those days. In 1950-51 there were 400 plus commercial banks in existence. These commercial banks failed in helping the government in attaining the objectives set by it . Thus, the government decided to nationalize 14 major commercial banks on 19th July, 1969. All commercial banks with a deposit base of over Rs.50 crores were nationalized. It was considered that banks were controlled by business houses and thus the banking system of that time failed in catering to the credit needs of poor sections such as farmers, cottage industry, craft men, etc. The second installment of nationalization came in April 1980 when a number of banks were nationalized. All commercial banks with a deposit base of over Rs.200 crores were nationalized .

Banks Nationalized in 1969 :

1. Allahabad Bank
2. Bank of Baroda
3. Bank of India
4. Bank of Maharashtra
5. Central Bank of India
6. Canara Bank
7. Dena Bank
8. Indian Bank
9. Indian Overseas Bank
10. Punjab National Bank
11. Syndicate Bank
12. UCO Bank
13. Union Bank
14. United Bank of India

Banks Nationalized in 1980 :

1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental bank of Commerce
5. Punjab and Sindh Bank
6. Vijaya Bank

*RBI was nationalized in 1949(1st January) , SBI was nationalized in 1955 .


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