Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

Explain the objectives of nationalization of commercial banks. - Economics

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Answer in Brief

Explain the objectives of nationalization of commercial banks.

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Solution

  1. The main objective of nationalization was to attain social welfare. Sectors such as agriculture, small and village industries were in need of funds for their expansion and further economic development.
  2. It helped to curb private monopolies in order to ensure a smooth supply of credit to socially desirable sections.
  3. To encourage the banking habit among the rural population.
  4. To reduce the regional imbalances where the banking facilities were not available.
  5. After nationalization, new bank branches were opened in both rural and urban areas, and they created credit facilities mainly for the agriculture sector and its allied activities.
Concept: Nationalisation of Banks
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Chapter 8: Indian Economy Before and After Independence - Model Questions - Part D [Page 188]

APPEARS IN

Tamil Nadu Board Samacheer Kalvi Class 11th Economics Answers Guide
Chapter 8 Indian Economy Before and After Independence
Model Questions - Part D | Q 37 | Page 188
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