Nationalization — Set 1
Banking · राष्ट्रीयकरण · Questions 1–10 of 60
Which Indian bank was the first to be nationalized after independence in 1949?
Correct Answer: A. Reserve Bank of India
The Reserve Bank of India was nationalized on January 1, 1949. It was originally established as a private shareholders' bank in 1935. This move ensured that the central bank functioned purely in the public interest.
How many commercial banks were nationalized in the first major phase on July 19, 1969?
Correct Answer: B. 14
Exactly 14 major commercial banks were nationalized during the first phase in 1969. These banks held over 85 percent of the total deposits in the country at that time. The objective was to align banking priorities with social goals.
What was the minimum deposit criteria for banks to be nationalized in the 1969 phase?
Correct Answer: C. Rs. 50 Crores
Banks with deposits of Rs. 50 crores or more were selected for nationalization in 1969. This threshold was set to target the largest private lenders in the economy. It allowed the government to control the flow of credit to priority sectors.
In which year did the second phase of bank nationalization take place in India?
Correct Answer: C. 1980
The second phase of bank nationalization occurred on April 15, 1980. During this phase, six more commercial banks were brought under government ownership. This further consolidated the state's grip on the financial system.
Who was the Prime Minister of India when the major 14 banks were nationalized in 1969?
Correct Answer: B. Indira Gandhi
Indira Gandhi was the Prime Minister during the 1969 nationalization. She believed that private banks were neglecting rural areas and agriculture. The ordinance for nationalization was issued just before the Parliament session.
What was the minimum deposit requirement for the six banks nationalized in 1980?
Correct Answer: C. Rs. 200 Crores
In the 1980 phase, banks with demand and time liabilities exceeding Rs. 200 crores were nationalized. This was a higher threshold compared to the 1969 criteria. It targeted the next tier of large private commercial banks.
The Imperial Bank of India was nationalized and renamed as which bank in 1955?
Correct Answer: D. State Bank of India
The State Bank of India was created in 1955 by nationalizing the Imperial Bank of India. This followed the recommendations of the All India Rural Credit Survey Committee. It became the largest commercial bank in the public sector.
Which of the following was NOT among the 14 banks nationalized in 1969?
Correct Answer: D. Vijaya Bank
Vijaya Bank was not part of the 1969 nationalization but was nationalized later in 1980. Allahabad Bank, Dena Bank, and Canara Bank were all part of the first group. This shows how nationalization progressed in stages.
Under which Act did the government acquire the 14 commercial banks in 1969?
Correct Answer: D. Banking Companies (Acquisition and Transfer of Undertakings) Act
The Banking Companies (Acquisition and Transfer of Undertakings) Act provided the legal framework for nationalization. It allowed the government to take over the assets and liabilities of private banks. This act is the primary legislation for public sector banking.
What was a primary socio-economic objective of bank nationalization in India?
Correct Answer: B. To facilitate credit to priority sectors like agriculture
A major goal was to ensure that credit reached neglected sectors such as agriculture and small-scale industries. Private banks were seen as serving only large urban businesses. Nationalization helped in expanding the branch network to rural areas.