Indira Gandhi nationalized 14 commercial banks on July 19, 1969.

Some of these banks included Bank of Baroda, Allahabad Bank, Canara Bank, Central Bank of India and Punjab National Bank.

Representative photo: iStock

Fifty-three years ago on this day – July 19 – then Prime Minister Indira Gandhi announced the nationalization of 14 major commercial banks, which held 85% of the country’s bank deposits.

Some of these banks included Bank of Baroda, Allahabad Bank, Canara Bank, Central Bank of India and Punjab National Bank.

Gandhi made the announcement in a speech to the nation at 8:30 p.m.

She said the decision was made after banks failed to help farmers, the agriculture line of credit and focusing on small industries and startups. The names were drawn on the basis of the share capital reserve. Bank with a capital of more than ₹50 crore were selected for nationalization.

The Banking Regulation Act 1949 was invoked to nationalize the banks.

Read also : The Center plans to reduce the number of nationalized banks from 12 to 4

Six other banks were nationalized in 1980.

The Reserve Bank of India was the first bank to be nationalized in 1949.

Government attributed nationalization and bank mergers to bank collapse At least 361 banks failed between 1947 and 1955.

Read also : SBI and other banks saw massive increase in NPAs in last fiscal year: Ministry of Finance

Furthermore, banks, while mostly privately owned when India gained independence, mostly favored big business and ignored farmers and the rural sector, leaving the latter at the mercy of rural land sharks. and lenders. Banks were nationalized with the promise of helping farmers and rural businesses.

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