Topic of the Week - 40th Anniversary of Bank’s Nationalization in our Country.

40^th Anniversary of Bank’s Nationalization in our Country.

Today(19^th July, 1969) is the 40^th Anniversary of Bank’s Nationalization in our Country.

Banking System in India is split between by nationalised banks, private sector banks and foreign banks.

The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalisation was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalised in 1969. 14 Banks were nationalized in the first wave of nationalization. The list of the 14 banks are

01) Central Bank of India

02) Bank of Maharashtra

03) Dena Bank

04) Punjab National Bank

05) Syndicate Bank

06) Canara Bank

07) Indian Bank

08) Indian Overseas Bank

09) Bank of Baroda

10) Union Bank

11) Allahabad Bank

12) United Bank of India

13) UCO Bank

14) Bank of India

Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalised in 1955 under the SBI Act of 1955.
The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores.

The above nationalization has had profound impact for our economy. As with every decision, there are pros and cons of nationlisation. But, in my view, the pros are more than the cons.

The early 90’s, with the advent of liberalization, private sector banks entered the banking scene.

ePayments as on date, are dominated by private/foreign banks, though the nationalized banks, are catching up.

ePayments-Easy and Efficient.