RAS question
Bank nationalization in India took place in:
Correct answer: (D) 1969 and 1980.
Bank nationalisation in India took place in two rounds: 14 major commercial banks were nationalised in 1969 and 6 more commercial banks were nationalised in 1980.
Explanation
Bank nationalisation in India was not a single-year event. The RBI report on private sector banks states that, historically, commercial banks in India were privately held until some banks were nationalised in 1969. It then records the two decisive rounds: the Government of India nationalised 14 major commercial banks in 1969 and 6 more commercial banks in 1980. The process occurred in two phases, under Prime Minister Indira Gandhi in the first phase, with the policy aim of pushing social banking and financial inclusion. Therefore, the complete answer is 1969 and 1980, not either year in isolation.
Why the other options are wrong
- (A) 1980 alone misses the first and larger round, when 14 major commercial banks were nationalised in 1969.
- (B) 1969 alone is incomplete because the RBI report also records a second round in which 6 more commercial banks were nationalised in 1980.
- (C) 1955 refers to the formation of SBI, while the nationalisation of commercial banks occurred in 1969 and 1980.
Concept
This tests the post-Independence evolution of India's banking structure, especially the shift from privately held commercial banks to public sector banks. It recurs in RAS because bank nationalisation links economic planning, social banking and financial inclusion.