Nationalization — Set 3
Banking · राष्ट्रीयकरण · Questions 21–30 of 60
Before 1969, the Indian banking system was largely controlled by?
Correct Answer: C. Industrial Houses
Prior to 1969, major banks were owned and managed by large industrial houses. This led to 'monopoly of credit' where funds were mostly directed to the owners' own businesses. Nationalization aimed to break this concentration of economic power.
The nationalization of banks was a step towards which economic concept?
Correct Answer: C. Socialism
Bank nationalization was a major step towards democratic socialism in India. It allowed the government to control the 'commanding heights' of the economy. This policy was intended to ensure social justice and equitable distribution of resources.
Which bank was NOT among the six nationalized in 1980?
Correct Answer: D. Dena Bank
Dena Bank was nationalized in the first phase in 1969, not in 1980. Vijaya Bank, Corporation Bank, and New Bank of India were all part of the 1980 group. Dena Bank was recently merged with Bank of Baroda.
Which of these events immediately preceded the 1969 nationalization?
Correct Answer: B. Social Control over Banks
The concept of 'Social Control' was introduced in 1967 before full nationalization. It aimed to change the management pattern of banks without changing ownership. When it failed to show results quickly, the government opted for full nationalization.
The nationalized banks are also known as?
Correct Answer: B. Public Sector Banks
Nationalized banks are categorized as Public Sector Banks (PSBs) because the government holds the majority stake. They are governed by the Banking Companies Act passed during their takeover. They form the largest segment of the Indian banking industry.
Which major bank was nationalized in 1969 and has its headquarters in Manipal?
Correct Answer: D. Syndicate Bank
Syndicate Bank was nationalized in 1969 and was originally based in Manipal. It was known for its innovative 'Pigmy Deposit' scheme. It was recently merged with Canara Bank.
In which city were the maximum number of banks nationalized in 1969 headquartered?
Correct Answer: C. Mumbai
Mumbai was the headquarters for the largest number of banks nationalized in 1969, including Central Bank of India and Bank of India. As India's financial capital, it was the hub for major private lenders. This reflected the concentration of banking wealth in the city.
The nationalization of 1969 was challenged in which famous Supreme Court case?
Correct Answer: D. R.C. Cooper vs Union of India
The R.C. Cooper case, also known as the Bank Nationalization case, challenged the government's move. The Supreme Court struck down the initial ordinance on technical grounds like inadequate compensation. The government then passed a new Act to overcome these legal hurdles.
The nationalization of the RBI in 1949 converted it into a ________ institution.?
Correct Answer: D. State-owned
Nationalization converted the RBI into a fully state-owned central bank. It gave the government the power to issue directions to the bank in the public interest. It marked the transition of the regulator from a private body to a sovereign entity.
Which among the following was a reason cited for nationalization?
Correct Answer: B. Prevention of concentration of economic power
Preventing the concentration of economic power was a primary reason for nationalization. The government wanted to ensure that the wealth managed by banks was used for national development. It aimed to democratize the access to capital.