Question

What is meant by nationalisation of banks. State four factors which led to the nationalisation of banks in India in 1969.

Answer 1

Nationalization of banks is an act of taking a bank owned by private sector into the public ownership of a national government by purchasing a majority stake (i.e. more than 50%) by the government.
Four factors that led to the nationalization of banks are:

1)For the expansion of banks in rural areas.
2) For Enhancement of trust among common masses in banking as govt owned banks were unlikely to fail or fool them.
3)For extension of banking services to common man.
4)Creation and extension of loans and advances to agriculture sector.