Question

Explain the following statement with reason.

Banks were nationalised in 1969.

Answer 1

• Banks were nationalised for the first time in 1969 in India under Prime Minister Indira Gandhi.
• Nationalisation of banks was essential to cover the deficits if they occurred while implementing different schemes.
• Nationalisation of banks means the conversion of private assets into public banks.
• 14 banks were nationalised in 1969 to avoid an economic crisis. The profits of these banks would now be added to the treasury of the government.
• Some of the banks that were nationalised include Punjab National Bank, Bank of Baroda, Bank of India and United Commercial Bank.