Generally speaking nationalization means the control of industries by the state when a government takes under its control as owner any privately run business, then this act is known as the act of nationalization. Nationalisation of banks despite the provisions, control and regulations of reserve bank of india, banks in india except the state bank of india or sbi, continued to be owned and operated by private persons by the 1960s, the indian banking industry had become an important tool to facilitate the development of the indian economy. The second dose of nationalisation came in april 1980 when banks were nationalized objectives behind nationalisation of banks in india the nationalisation of commercial banks took place with an aim to achieve following major objectives 1.
Nationalisation of banks in india - introduction after independence the government of india (goi) adopted planned economic development for the country (india) accordingly, five year plans came into existence since 1951 this economic planning basically aimed at social ownership of the means of production.
Nationalization of the banks was a wise step or it was unwise, is net a debatable issue at this juncture since it has now been done, we must only try to ensure that these banks do not become a victim of the poor customer service and red-tapism as is the case with the nationalized banks. Essay on the nationalization: its advantages and disadvantages article shared by generally speaking nationalization means the control of industries by the state. According to bank economists, during the last 28 years of nationalisation, the branches of the public sector banks rose 800 per cent from 7,219 to 57,000, with deposits and advances taking a huge jump by 11,000 per cent and 9,000 per cent to rs 5,03596 billion and rs 2,7653 billion respectively.
Nationalization of banks in india generated a controversy which was meaningless in fact the public deposits in the banks have increased so much that it is unsafe to leave them in the private hands banks by advancing loans to the speculators and non- priority sectors can play havoc with the economy of the country. Essay on working of the nationalized banks in india the objective behind the nationalization of banks was to exercise a full control over the banking industry in the country it was stated that the government wants back to work as an instrument of economic development for backward areas and for financing weaker sections of society. The stated reason for the nationalization was to give the government more control of credit delivery with the second dose of nationalization, the goi controlled around 91% of the banking business of india later on, in the year 1993, the government merged new bank of india with punjab national bank.
Nationalization in economics, nationalization means the establishment of public ownership over the principal means of production nationalization implies that, on behalf of the nation, the government of the country owns and operates the productive system, and sometimes also the distributive system.
Developing countries such as china and india have nationalized their banks in the past while india opened its banks for foreign investment in the early 1990s following its policy of economic liberalization, china continues to safeguard the interests of its banks.
Banks in india – nationalisation of banks essay sample despite the provisions, control and regulations of reserve bank of india, banks in india except the state bank of india or sbi, continued to be owned and operated by private persons. Objectives behind nationalisation of banks in india the nationalisation of commercial banks took place with an aim to achieve following major objectives 1 economic impacts on 2008 banking crisis essay constant stream of press reports was released about the huge losses in worldwide mortgage lending and downturns of other institutions.