RAS question
Nationalisation of 14 major banks took place in:
Correct answer: (C) 1969.
The nationalisation of 14 major banks in India took place in July 1969.
Explanation
The 14 major banks were nationalised on 19 July 1969 by Indira Gandhi's government through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance. The threshold was banks with deposits above Rs. 50 crore. The Reserve Bank of India also treats July 1969 as the major turning point, describing it as the nationalisation of 14 major private-sector commercial banks and linking it to a sharp post-nationalisation rise in scheduled commercial bank deposit growth, wider branch expansion, and stronger mobilisation of household savings. This is why 1969, not 1980, is the answer: 1980 was the later second round, when six more private-sector banks were nationalised.
Why the other options are wrong
- (A) 1975 does not match either the first nationalisation of 14 major banks in 1969 or the later second round mentioned for 1980.
- (B) 1980 refers to the second round, when six more banks were nationalised, not the 14-bank nationalisation asked in the question.
- (D) 1955 is associated with the formation of SBI, not the nationalisation of 14 major banks.
Concept
This tests post-Independence banking reforms, especially state intervention in commercial banking. It recurs in RAS because bank nationalisation links economic planning, financial inclusion, rural branch expansion, and deposit mobilisation.