Download the BYJU'S Exam Prep App for free IAS preparation videos & tests - Download the BYJU'S Exam Prep App for free IAS preparation videos & tests -

What are the benefits of Nationalisation?

There were many benefits which accrued due to nationalisation of banks. Some of the benefits were improvement in the living standards, funds were made available for core sectors such as steel, coal, agriculture. It helped in taking banking services to different parts of the country which were lacking in banking services. You can read about the Pradhan Mantri Jan-Dhan Yojana (PMJDY) – National Mission for Financial Inclusion in the given link.

Due to nationalisation of banks, the profits earned by the banks helped the Government in its various economic policies, there was marked improvement in the working conditions of the bank employees, and nationalisation of banks helped in preventing monopoly by ensuring that credit was available to everyone and not the select few.

Further readings:

  1. Types of Non Banking Financial Institutions India
  2. RBI – Reserve Bank of India [UPSC Indian Economy Notes]

Related Links

Payment Banks- History & Regulations (UPSC Notes)

Financial Inclusion – National Strategy for Financial Inclusion [UPSC GS-III]

Types of Banks in India – Category and Functions of Banks in India

Previous Years Economics Mains Questions for UPSC GS-3

License for Small Finance Banks by RBI

Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*