Banking System

Introduction At the time of Independence, India had a fairly well-developed banking remains with much than 345 banks having more than 4800 branch offices. These banks although developed but they could not conform to social needs of the society. These banks generally catered to the needs of industries and as well giving once. Other priority sectors like agriculture, small scale of measurement industries, exports etc., were to the highest degree neglected. To overcome these deficiencies, the Government announced the nationalisation of 14 study commercial-grade bank with effect from July, 1969. The objectives of nationalisation were to authorization the senior high school of the economy and to meet progressively the needs of development of the economy, in conformity with national form _or_ system of government and objectives. Six more banks were nationalised in 1980. (Two banks were merged in 1993, so at present on that point ar 19 nationalised banks). Nati onalisation of Commercial Bank The following factors are amenable for nationalisation of commercial banks in 1969. 1. Private willpower of commercial banks and absorption of economic power Until nationalisation, all study(ip)(ip) banks were controlled by whizz or more short letter house. These business houses utilize the resources contributed by the mass of the people for their own private benefits.

They financed those projects which finally enhanced their own financial resources.Thus, private willpower of banks resulted in assimilation of income and wealth in few hands. 2. Urban- bias advance to nationalisation, commercial banks h ad shown no interest in establishing offices! in semi-urban and learn areas. More and more branches were opened in cities resulting in concentration of banking facilities in urban areas. For example, out of about 5.6 lakh villages in India, only 5000 were being served by commercial banks and five major cities (Ahemdabad, Bombay, Calcutta, Delhi, and Madras) together had one seventh share in purpose of bank offices and about fifty percent...If you want to get a full essay, order it on our website: OrderEssay.net

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