Nationalization
Banking · राष्ट्रीयकरण
📋Quick Overview
Nationalization of banks means transferring private banks to government ownership. SBI was already nationalized in 1955 (from Imperial Bank). The major nationalization happened in two phases: 14 banks on 19 July 1969 (banks with deposits above Rs 50 crore) under PM Indira Gandhi, and 6 more banks on 15 April 1980 (deposits above Rs 200 crore). The purpose was social control of banking, expanding credit to agriculture and priority sectors, reducing private monopoly, and promoting financial inclusion.
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SBI nationalized in 1955 (from Imperial Bank) | 14 banks nationalized on 19 July 1969 | 6 banks nationalized on 15 April 1980 | Total = 20 banks (excluding SBI)
📖First Nationalization — 19 July 1969 (14 Banks)
| S.No. | Bank Name | Established | Current Status |
|---|---|---|---|
| 1 | Central Bank of India | 1911 | Active |
| 2 | Bank of Maharashtra | 1935 | Active |
| 3 | Dena Bank | 1938 | Merged with Bank of Baroda (2019) |
| 4 | Punjab National Bank | 1894 | Active |
| 5 | Syndicate Bank | 1925 | Merged with Canara Bank (2020) |
| 6 | Canara Bank | 1906 | Active |
| 7 | Indian Bank | 1907 | Active |
| 8 | Indian Overseas Bank | 1937 | Active |
| 9 | Bank of Baroda | 1908 | Active |
| 10 | Union Bank of India | 1919 | Active |
| 11 | Allahabad Bank | 1865 | Merged with Indian Bank (2020) |
| 12 | United Bank of India | 1950 | Merged with PNB (2020) |
| 13 | UCO Bank | 1943 | Active |
| 14 | Bank of India | 1906 | Active |
📖Second Nationalization — 15 April 1980 (6 Banks)
| S.No. | Bank Name | Established | Current Status |
|---|---|---|---|
| 1 | Andhra Bank | 1923 | Merged with Union Bank (2020) |
| 2 | Corporation Bank | 1906 | Merged with Union Bank (2020) |
| 3 | New Bank of India | 1936 | Merged with PNB (1993) |
| 4 | Oriental Bank of Commerce | 1943 | Merged with PNB (2020) |
| 5 | Punjab & Sind Bank | 1908 | Active |
| 6 | Vijaya Bank | 1931 | Merged with Bank of Baroda (2019) |
📝Reasons for Nationalization
- •Social control of banking — reduce concentration of wealth
- •Expand credit to agriculture and rural areas
- •Priority sector lending (agriculture, small industries, education)
- •Reduce private monopoly over banking
- •Financial inclusion — banking services to common people
- •Implement government's economic policies effectively
- •Eliminate use of bank funds by industrialists for personal gain