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What are the objectives of Nationalization of Banks?

Apr 27, 2015 17:29 IST

    Nationalization of Banks

    • First bank to be nationalized was RBI on 1 January 1949.
    • Nationalization of Imperial Bank of India and its conversion into State Bank of India in July 1955.
    • Conversion of 8 major states associated banks into subsidiary banks in 1959.
    • Nationalization of 14 other Indian Scheduled banks in July 1969.
    • Nationalization of 6 more banks in April 1980.
    • Indian Bank merged into Punjab National Bank in 1955
    • At present, there are 27 commercial banks in public sector. Out of these, 19 banks are nationalized.
    • There are 297 scheduled banks (including foreign banks) and one non scheduled bank at the end of December 2000.
    • Out of 297 scheduled banks, 223 banks are in public sector and accounts for about 82% of the total deposits of scheduled banks.

    Objectives of Nationalization

    • To eliminate concentration of economic power in few hands
    • To diverse the flow of bank credit towards priority sector consisting of agriculture and and allied activities, small scale industries and small businesses.
    • To foster a new class of entrepreneur so as to create, sustain and accelerate economic growth.
    • To professionalize bank managements.
    • To impart adequate training as also reasonable terms of service to bank staff
    • To extend banking facilities to unbanked rural areas.

    List of Nationalized Banks in India

    Nationalized Banks / Public-sector banks

    • Allahabad Bank
    • Andhra Bank
    • Bank of Baroda
    • Bank of India
    • Bank of Maharashtra
    • Canara Bank
    • Central Bank of India
    • Corporation Bank
    • Indian Bank
    • Indian Overseas Bank
    • Oriental Bank of Commerce
    • Punjab National Bank
    • Punjab & Sind Bank
    • Syndicate Bank
    • UCO Bank
    • Union Bank of India
    • United Bank of India
    • Vijaya Bank
    • IDBI Bank
    • Dena Bank
    • ECGC

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