Banks in India - Nationalisation of Banks Essay - 1706 Words.
Essay on the Exchange Banks of India: Exchange banks have been officially defined as those “whose had offices are outside India.” In western countries, the phrase exchange banks included those banks which were “specially concerned with financing the trade of India and China which countries, not having a gold standard, have exchanges peculiarly liable to fluctuation”.
The modern banking system has no scope for this kind of exploitation Before nationalisation, banks were catering to the needs of only a small section of people belonging to the upper strata of society. In rural areas, the needy until quite recently had no choice but to go to the money lender and take loans on his terms. So the benefits of modern banking did not reach the poor.
They have move from nationalised banks to privatise banks because the world’s market dictate that this is the way it has to be. It’s obvious: banks owned by governments are a bad thing. So that’s the argument against nationalising banks. Let’s look at the arguments for nationalisation.
Bank Nationalisation 49th Anniversary: On 19 July 1969, the Indira Gandhi-led Congress government nationalised 14 commercial banks of the country. What was behind the decision? Impacts of bank.
Nationalisation Of Banks In India The Economic Effect Economics Essay. After Independence India adopted a socialist pattern of economy as its goal. The aim was to achieve a society with wealth distributed as equitably as possibly but ensuring that the government does not acquire a totalitarian role. The Government of India wished to play an active role in the economic life of the nation and.
The process of nationalisation continued till 1960 and on 19th July, 1060, fourteen of the nineteen commercial banks were nationalised. However, the nationalisation process could not do much to solve the problem of rural indebtedness. Therefore, a new type of banking institution called Regional Rural Banks was conceived. Regional rural banks.
The nationalisation of the commercial banks in India was a very controversial issue till the nationalisation of 14 major banks in July, 1969. A number of arguments were advanced by economists, political leaders, bankers, workers, and the public in support of nationalisation of banks which are enumerated below: 1. Neglect of Priority Sectors.