Economic Interest 01:- Nationalization of Banks 1969 "अशोभनीय, अनुचित, अकारण,आवश्यक"
Nationalization of Banks is one of the most significant reforms done under the Iron Lady of India, Indira Gandhi. Most people consider the nationalization of banks a failure that had no economic and social justification but was fed by the political motive of Mrs Gandhi. Let us understand nationalization with the help of a story. A bank that had a faulty Xerox machine to print its money replaced its Xerox machine with a shredding machine. Unfortunately due to incorrigible Indian administration, a bad idea once implemented is highly durable. No government including the current Modi government has not dared to reverse the decision. History:- Events leading to nationalization of banks A) Economic Reason 1) In 1955, The Imperial Bank Of India was renamed as State Bank Of India. In 1951, there were more than 400 commercial banks who worked under the private sector. More than 360 banks failed between 1947 - 1955 at the rate of 40 banks per year. This damaged people's confidence in the