Question

Bank nationalization case relates to the nationalization of ___________ .

• A. some banks by the government of India after economic liberalisation in 1991
• B. some banks under a law during the Prime Ministership of Mrs. Indira Gandhi
• C. all the private Indian Banks during the Prime Ministership of Narasimha Rao
• D. all the private Indian Banks during the Prime Ministership of Mrs. Indira Gandhi

Answer 1

Answer: (B)

some banks under a law during the Prime Ministership of Mrs. Indira Gandhi

The government of India issued an ordinance (Banking Companies Acquisition and Transfer of Undertakings Ordinance, 1969) and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969 under the prime ministership of Mrs. Indira Gandhi. These banks contained about 85% of the total bank deposits of the country at that time.