Sunday, July 18, 2010

Bank Nationalisation day

I recall July 19, 1969.  It was on that day, the Union Government headed by Mrs Indira Gandhi as Prime Minister took upon several radical measures including nationalisation of fourteen private sector banks in India having more than Rs. 50 crores of deposits.  The second nationalisation of six more commercial banks in April 1980.  Earlier, in 1955 Imperial Bank of India was made State Bank of India, which also created seven subsidiary banks at Patiala, Indore, Bikaner & Jaipur, Mysore, Travancore, Hyderabad and Saurashtra.  While SB of Saurashtra was recently merged with SBI two years back, the process is on for one more such merger that of SB of Indore with SBI during this year. PSBs in all have a major share of over 80 per cent in the banking business in India. 

Other events to remember were Abolition of Privy Purses, split in the Indian National Congress, etc.  Also during the same period was the introduction of Lead Bank Scheme for all the banks to take up Integrated Rural Devleopment Program (IRDP) for increasing / releasing of rural credit in an aggressive, systemic, planned way.  Each prominent nationalised bank was asked to choose a District for preparing Credit Plans.

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