Banking System

Introduction At the time of Independence, India had a fairly well- certain banking system with a good deal than 345 banks having to a greater extent than 4800 branch offices. These banks although developed but they could not conform to social need of the society. These banks by and large catered to the needs of industries and too free once. Other priority sectors alike agriculture, small scale industries, exports etc., were to the highest item neglected. To overcome these deficiencies, the Government proclaimed the nationalisation of 14 think commercial message bank with burden from July, 1969. The objectives of nationalisation were to control the ranking(prenominal) high school of the parsimony and to meet progressively the needs of development of the economy, in unanimity with national policy and objectives. half dozen more banks were nationalised in 1980. (Two banks were incorporate in 1993, so at present on that superman ar 19 nationalised banks). nationalization of Commercial Bank The following factors atomic number 18 responsible for nationalisation of commercial banks in 1969. 1. Private possession of commercial banks and absorption of sparing power Until nationalisation, all study(ip)(ip) banks were controlled by one or more short letter house. These headache houses used the resources contributed by the atomic pile of the people for their take in cloistered benefits.

They financed those projects which ultimately enhanced their own financial resources.Thus, private self-command of banks resulted in closeness of income and wealthiness in few hands. 2. Urban- bias approach to nationalisation, commercial banks had shown no pursuit in establishing offices in semi-urban and unlettered areas. More and more branches were undetermined in cities resulting in concentration of banking facilities in urban areas. For example, erupt of about 5.6 lakh villages in India, only 5000 were being served by commercial banks and five major cities (Ahemdabad, Bombay, Calcutta, Delhi, and Madras) together had one seventh share in modus operandi of bank offices and about cubic decimetre percent...If you want to get a full essay, order it on our website: Orderessay

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