BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There was urban bias
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Agriculture sector was neglected
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There was concentration of economic power
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All of the above
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Detailed explanation-1: -Why was nationalisation of banks required? Nationalisation of banks was implemented under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970. The ordinance came into force on 19 July 1969, “ to serve better the needs of development of the economy in conformity with national policy objectives."
Detailed explanation-2: -Nationalisation of banks was essential to cover the deficits of banks occurred while implementing different schemes. Also the profits of these banks. would come into the government treasury once they were nationalised.
Detailed explanation-3: -In 1969, Allahabad Bank, Canara Bank, United Bank of India, UCO Bank, Syndicate Bank, Indian Overseas Bank, Bank of Baroda, Punjab National Bank, Bank of India, Bank of Maharashtra, Central Bank of India, Indian Bank, Dena Bank, Union Bank and were nationalised.
Detailed explanation-4: -Hence, the Government of India decided to nationalise the scheduled commercial banks having deposits of more than 50 crores, to better serve the needs of the economic development in conformity with national policy objectives.