Who was responsible for nationalization of banks in India?

minister Indira Gandhi
At 8.30 pm on the night of July 19, 1969, then prime minister Indira Gandhi announced to the nation that 14 major commercial banks which between them controlled 85 percent of bank deposits in the country, had been nationalised.

Why were banks nationalized during Indira Gandhi tenure?

In 1969, Gandhi moved to nationalise fourteen major commercial banks. Most of these nationalisations were made to protect employment and the interest of the organised labour. The remaining private sector industries were placed under strict regulatory control.

What is the reason for bank nationalised?

The needs for nationalization of banks arose due to many reasons. These were catering to the needs of big business houses and large industries. Further, sectors such as exports, agriculture, and the small-scale industries were lagging behind. The moneylenders used to export the poor masses in India.

Who passed the bank nationalization Ordinance?

Indira Gandhi
India at that time was ruled by Indira Gandhi and she presented the Banking Companies ( Acquisition and Transfer of Undertaking ) Ordinance 1969 to the public through a radio broadcast. The ordinance ensured unmatched dominance of state’s control in the entire banking sector of the nation.

Who started banking system?

During the period of British rule merchants established the Union Bank of Calcutta in 1829, first as a private joint stock association, then partnership. Its proprietors were the owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace these two banks.

Which policy initiatives did Indira Gandhi take?

American policy makers had complained of continued restrictions imposed on the economy. At the same time, Indo-US relations were straining due to Gandhi’s criticism of the American bombing campaign in Vietnam.

When did the government of India Nationalised 6 big commercial bank?

1980
It was in the year 1969, 19th July when 14 of most major commercial banks functioning in India underwent nationalization and then in the year 1980 another 6 banks were nationalized which enhanced the total number to 20.

Who nationalised 14 banks in 1969?

Thereafter, the Government of India issued the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country.

Which bank was not nationalised in 1969?

The State Bank of India (SBI) was not nationalised in 1969.